NRC's Approach

Successful clusters need staying power, often taking decades to mature. The building process must be community-driven and focused, and must have the support of effective networks and committed local champions. For nearly a decade, NRC has worked with the private sector, colleges and universities and all levels of government to fan the spark of innovation in communities across Canada.

Many NRC research facilities find themselves at the hub of a cluster, so over the years, NRC has looked for answers to questions like:

1. What makes clusters grow?
2. What can we do to optimize a cluster's chance of success?
3. How can we work with others to support a cluster's growth?

NRC has developed a framework, below, to illustrate the relationship between cluster inputs (the basic elements of a cluster), cluster outputs (how the cluster performs) and firms (at the heart of all clusters).

The bottom three circles (inputs) highlight the importance of:

• Organizations that support firms (e.g. universities, government laboratories, industry associations, specialized suppliers, risk capital providers)
• Basic factors required for a knowledge economy (e.g. supply of qualified people, positive business climate, efficient transportation infrastructure, etc)
• The competitive environment (i.e. do firms have the skills required to succeed, how closely are firms located to competitors and customers)

The top three circles (outputs) show what successful clusters can accomplish, if inputs are favourable:

• A significant number of firms (i.e. a mix of spin-offs, small and large firms);

• High levels of interaction (e.g. collaboration and linkages within the cluster and beyond the cluster);
• Very dynamic (e.g. investing significant resources in R&D; innovating by developing and introducing new products and processes to the market; generating revenue from innovations; attracting new firms to the cluster; fostering spin-offs and growth in existing firms).

This framework shows how different stakeholders can influence a cluster's success. It is clear that there are outcomes in every cluster that are beyond the control of any one player, and require concerted action. In all clusters, stakeholders must work together to support the cluster and increase its chances for success.