Establishment and Growth of Business Clusters with Public Aid

Abstract

Industry or business clusters have become a part of an industrial policy in most countries not only within the European Union and are considered an effective instrument for the growth of firms and regional competitiveness. Their development is promoted and supported by many financial schemes at regional, national and even supranational level. The development of industry clusters in Czechia has had a very short tradition so far as the concept of clusters has become known here only at the beginning of this century. Surprisingly public aid for cluster development was approved at the governmental level very soon and the top-down approach strategy followed. The objective of the paper is to identify the basic phases of cluster development in the Czech Republic and to describe the impact of public financing on cluster establishment and growth in Czech regions. The presented case of Moravia-Silesia shows the cluster dynamics in the region which made the use of EU structural funds efficient for their development.

Cluster policy in Europe and Asia: A comparison using selected cluster policy characteristics

“…In terms of support cluster development, there may be used different forms of financial resources. In addition to private resources mostly in forms of regular membership fees of cluster members, Skokan et al (2012) distinguish open-end and temporary public financing which is expected after 3 to 5 years of cluster operations.…”

Computer modelling reveals the optimal development for the organisational structure of business clusters

“…Two approaches typify building STPs: First, a 'top-down' approach, when STPs are established as a vision of regional or public authorities to further enhance regional innovation and financial development, and this has recently become the favoured approach world-wide (Skokan et al, 2012), mostly in form of science and technology parks e.g. Mjärdevi science park -MSP -in Sweden.…”

“…Conversely, is the 'bottom-up' approach, where an STP is recognized as a 'critical mass' of similar and related industries in a specific area, which then comes to the notice of Multi-National Corporations (MNC), start-ups, and governments, who in turn try to develop it further (Skokan et al, 2012). A typical example of the bottom-up approach is Silicon Valley where MNCs had to open offices in order to not be left behind by new innovations.…”

Influence of Business Competitiveness on SMEs Performance

“…AccordingtoVolberda,Morgan,Reinmoller, Hitt,Ireland,andHoskisson,(2010), strategicmanagementbasedonlong-termforecasts,helpsthecompanytoanticipate futurechallengesandopportunities.AccordingtoKotlerandKeller(2007),strategy shouldexpressthebasicideaofwhichwaythecompanyintendstoachieveitsgoals. Therehasbeenanincreaseintheemphasisoftheimportanceofstrategyforinnovative developmentandcompetitivenessoffirmsinrecentyears (Glaister,2008;Skokan, 2010;David, 2013;Volberda et al, 2010). Competitiveness is the capability of companies,industries,regions,nationsandsupranationalregionstocreatearelatively high-incomefactorandrelativelyhighemploymentlevelsonasustainablebasis,while permanentlybeingexposedtointernationalcompetition (OECD,1994).According to Chikan, Czako, and Zoltayne (2002), improvement of corporate performance is associatedwithbettermarketperformanceandhigherprofitability.Competitiveness isameasureoftheabilityandperformanceofacompanywithinabusinesssector.…”