Promoting cluster policy in Vietnam: some lessons for institutional building prof. Nicola D. Coniglio University of Bari (Italy) & Norwegian School of Economics. New Delhi (India), 20-22 February 2014. Learning from a case study:
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Promoting cluster policy in Vietnam: some lessons for institutional buildingprof. Nicola D. ConiglioUniversity of Bari (Italy) & Norwegian School of Economics
New Delhi (India), 20-22 February 2014
Do we really need to ”embedd” cluster policy into the Institutional framework?
(pilot) Cluster development initiatives might be successful in the absence of a structured “cluster development framework” …. but….
… the scaling up of cluster development initiatives requires an Institutional arrangement (software: legislation / Master plan / policy guidelines; hardware: public officials – national or subnational agencies or ministries etc. - allocated with the responsabilities over cluster policy initiatives
Institutional ‘bottlenecks’ are one of the main sources of failure of cluster development initiatives
Institutionalization of cluster policy: pro and cons
i) address multiple market failures;
ii) cross-cutting issues (requires a competent and authoritative coordination of multiple ‘policy tools’);
iii) Involve several actors and multiple-levels of Government
Vietnam case lesson 1. Identifying the policy constraints
There is no ‘one-size-fits-all’ cluster policy setting. The optimal policy setting depends on the specific circumstances
Institutional diagnostics is a fundamental prerequisite (division of labour within the Gov / identifying the ‘capacity’ and ‘structural’ constraints / strenght and capacity of other key actors such as business associations)
Avoid adding Institutional Complexity (not another empty office in a Ministry but an effective and authoritative ‘coordination tool’ of policy actors which tipically conduct their job in isolation)
2. Identifying the best (not necessarily the optimal) possible policy architecture
Who is in charge? (there is a strong case for ‘placing’ cluster policy close to SMEs development policy)
The division of responsabilities btw Central and Local governments (definition of the legal framework / funding / coordination / implementation / monitoring / evaluation)
Involvement of other stakeholders
3. Why we might need an ‘impartial broker’ also for the ‘Institutional’ element of cluster policy
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A (potential) model of governance of cluster policy in Vietnam
Ministryof Planning and Investments
Ministryof Science and Technology
MinistryofIndustry and Trade
MinistryofEducation and Training
Division of roles between central and provincial government