Towards a Diagnostic Approach to Regional Development: An Application of Smart Specialization Principles to the CaribbeanMarvin Pacheco
Breakout Session: Clusters and smart specialisation strategies: analytical tools
5 September 2013
Towards a Diagnostic Approach to Regional Development: An Application of Smart Specialization Principles to the
Caribbean
Presented by Marvin Pacheco - Researcher
Centre for Strategy and Competitiveness
Presentation to The 16th TCI Annual Global Conference
Trinidad & Tobago
The Five Growth Poles
(Source: Medium-Term-Policy-Framework-2011-14 Ministry of Planning and Economy October 2011)
Nature of the Project
Resource Based View • Key Resources and Strengths for 4C region
– Tangible • Strategic Geographic location between the two cities• Available flat land (Post Caroni lands) • The existence of a scalable farming demonstration site – PCS Model Farm • The Port of Point Lisas• The Point Lisas Industrial Estate • Existence of key heritage and cultural sites • Strong ICT network
– Intangible • Strong agriculture heritage • Traders
– Capabilities • Knowledge of agriculture • Plant construction, maintenance and management • Energy management and skill capabilities
Firm level Performance in Couva
Source: CSO Change in Couva, Share in Total Industry
Petroleum Industry
Diamond Analysis for Couva
Identification of Strong Potential Clusters in 4C Region
• Couva – Downstream Energy Services
Downstream Energy Services Couva/Point Lisas
• Employment – 250 to 1,200 persons • Employment type
– Skilled – Engineering Services – Technical – Drafting, Wielding Services, – Unskilled – Manual labor
• Turnover– US$15 to US$20 million per annum
• Linkages with other sectors – Transport – Fabrication companies– Petrochemical and Energy based Manufacturing Company
Downstream Energy Services
Downstream Energy Services
Firm level performance in Chaguanas
-0.10% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60%0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80Textiles, Garments, Footwear
and Headwear
Printing, Publishing and Paper Converters
Wood and Related ProductsChemicals and Non-Metallic
MineralsAssembly-type and Related
Industries
Miscellaneous Manufacturing
Construction
Distribution
Finance, Insurance, Real Estate and Business Services
Transportation, Communica-tion and Storage
Source: CSO
Firm
Leve
l Con
cent
ratio
n
Change in Chag. Share in Total Industry
Company's strategy,
structure and rivalry
+ Presence of over 1,500 business establishments
+ Strong Retail and wholesale trade
+ Fierce Rivalry in this industry
- High degree of informality among
businesses Demand
Conditions + Demanders from two key
cities in Trinidad+ Relatively high demand for products and services
+ Existence of key markets centers in Chaguanas
Related and supporting industries
+ Existence of strong IFC for the area
+ Strong presence of Tertiary institutions with
links to the business community
+Presence of key financial institutions in the borough- Some rivalry among iFCs
Factor conditions+ Central location between two
cities+ Large available Land
+ Experience in Sugar Cane Cultivation
+ Available educated human resource base
+ Cultural and entertainment sites
+ Presence of 6 Police stations + Strong Telecommunication
infrastructure- Increasing traffic and
congestion - Increase in petty crime
- High poverty levels
Diamond Analysis for Chaguanas
Pottery – Chaguanas • Profile of Pottery Cluster- Chaguanas
• Cluster: Pottery
• Description of Product or Service- The products made are Orchid pots, Souvenirs/pots, Tiles, Diyas (religious items used for worship), flower pots, vase, coal pots, jars, candle stands goblet, clay pots, vases, etc. walk sign, functional and decorative strawberry pots, etc
• Age of pottery industry: This is now the fourth generation and the cluster is around 100 years old
• Employment ranges from 1-50 persons• Employee qualifications:
– Employees in these pottery have primary school leaving certificates as well as Secondary school qualifications ( O’ Levels)
• Employment growth over the last 5 years- <10% for smaller potters
Pottery – Chaguanas • Funding- All the respondents agreed that their initial
investment and working capital is from private equity, • Technology- All pottery workshops are categorized as
Technology Users. • Dominated - By small and medium sized pottery
establishment • Formal Quality Accreditation- No formal Accreditation Exist • Annual Turnover - US$8k to US$80k• Market Channel – The firms mainly do local retailing and
wholesaling.
Pottery – Chaguanas
Pottery – Chaguanas • Main barriers to growth
– Lack of Local Clay Suppliers– Inability to access and retain skilled staff-due to competition from
governmental support programmes e.g. (The CEPEP Company Limited)
• Collaboration and industry Associations/Institute– Key Associations and industry’s the pottery industry collaborates with:
• Environmental Management Authority/ MP Office/ Government that provides mining rights to potters on Carlsen Field.
• Point Fortin Training Institute • Export Development Company• Point Fortin Training Institute• T&T Tour Guides Association
• Functions which specialized organizations coordinate and the sites consider to be most important– Basic Research– Applied Research– Market Research– Joint Promotion– Joint selling activities– Bundling products and services– Management training
Pottery – Chaguanas
Summary
• Location Quotients• Diamond Analysis• In depth interviews• Focus Group Discussion
Thank you