Innovative Cluster in Auckland

“The Auckland Council is promoting the clustering of similar businesses as part of its economic vision for the city. The "innovation clusters" were mapped out in the Auckland Unleashed discussion document, which lays out ideas on where the council might take the city over the next three decades. The document stressed the importance of manufacturing to the Auckland economy and claimed it contributed 38.4 per cent to the region's GDP and produced more than half of the city's exports.” Stated by Hamish Fletcher (4^th April 2011) on one article from New Zealand Herald.

In recent years there has been a fundamental shift in the way regional economic development is viewed. Promoting economic cluster formation has become an important new strategy for regional competitive advantage and entrepreneurial growth. In short, ‘clusters’ is a tool for economic development. Specifically, it is a new way of thinking about an economy and organizing economy development, aligned with nature of competition and sources of competitive sectors. And it recasts the role of the private sector, government, trade associations and educational or research institutions, involves firms of all sizes, creates a forum for constructive business-government dialog. It is a means to identify common opportunities, not just common problems. Furthermore, economic cluster is also a lesson for economic development policymakers and practitioners.

Current cluster exist in the Auckland region has boat building. Relate with Porter’s competitive diamond, boat building is one of factors of production which has great kiwi value. Take account of Auckland as ‘city of sails’, boat building would also effect by demand conditions. Boat building supplier and related industries those are internationally competitive. This supports cost-effective supplier and stimulates innovation. At same time, Auckland has great waterfront nature resource, skilled labour to created, organized and managed firm rivalry and strategies.

The innovative cluster in Auckland can be used to stimulate innovations, facilitating commercialisations in associate with incubator programmes. If we are looking for more vibrant future economic environment, why don’t we adopt and establish innovative clusters more promptly?