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