Developing ClusterBased Policies in

Montenegro

Changing Paradigms of Cluster DevelopmentLearning from Global Experiences

Ned Delhi - 20th to 22nd February 2014

Conference

About Montenegro• Location: Southeast Europe

• Market – based economy

• EU candidate country

• Currency: EUR

• Member of WTO

• Free Trade agreements with EU, CEFTA, EFTA,Russia, Ukraine…

• High level of FDI

Importance of cluster development for regional development• Montenegro – NUTS 1

• Three geographic areas (Nationally Divided)

– North, Central and South

• Teritorial organisation

– 22 municipalities

• Aims for introducing clusters in Montenegrian economy – to overcome regional differences, reduce unemployment, stimulate job creation and increase export capacities

• Cluster development concept main focus on SMEs and Northern

region

Cluster Development process - initial activities

• 2009/2010 starting with mapping process

• In the Durmitor region there were 26 potential clusters mapped,23% is focused on tourism, 30% on forestry and wood processing,and 47% on agricultural production.

• In the same areas 3 CDS have been prepared.

• In all 5 municipalities potential members were facing simular problems and challenges (product quality, increase

prodactivity, new market entrance).

Implemented activities up to now• Mapping process (2011/2012)

• Strategy of Clusters Development

• Elaborated diagnostic studies (2012) according to UNIDOmethodology

• Pilot Clusters:1. Freshwater fish cluster

2. Olive oil cluster

3. Wood processing cluster

4. Meat production cluster

5. Mushroom cluster

6. Organic Crop/Buckwheat Cluster

Mapping process (2011/2012)• Methodological approach

(UNIDO recommendations)

– Getting info from CRPS

– Research conducted on afield

– Analyzing data

– Analyzing current positionof linkages

– Mapping

Strategy of cluster development• Methodological approach

Main challenges in the CDP

Clusters

• Market

• Product quality

• Production technology

• Lack of recognition of the brend

Institutions

• Limited access to capital

• Lack of organisation for cluster development supprot

Conclusion

Implementation Strategy

• Capacity Building Phase

– Competence development,

– Awareness raising

– Cluster level execution

– Strategic direction

– Knowledge management & dissemination

– Monitoring & reporting

• Rollout Phase

– Cluster level execution

– Monitoring & reporting

– Strategic considerations

• UNIDO program for Montenegro

THANK YOU

Changing Paradigms of Cluster DevelopmentLearning from Global Experiences

Ned Delhi - 20th to 22nd February 2014

Conference