Key Requirements for the Successful Development of Resource Exchanging Clusters

Abstract

The objective of this research project was to develop a set of requirements for the successful development of resource sharing business parks. In this research resource sharing business parks differ from EIPs in that there is no closed loop condition for materials and energy for resource sharing business park as this condition creates extra burdens for firms. From reading literature I conclude this condition is the main reason that intentions to create EIPs fail. The main research question of this research project is: What is a coherent set of Requirements for the successful development of resource sharing business parks? This research question is answered by first explaining which factors are required for the successful development of resource sharing business parks according to literature. Then it is explained to what extent the factors for the successful development of resource sharing business parks found in literature correspond with the factors that were identified at two cases. Finally experts are consulted to find out if the improved set of requirements could really be used to successfully develop resource sharing business parks? The literature review showed little overlap between EIP literature and cluster literature. That is striking as EIPs are a sub-category of clusters. The literature review produced the following Preliminary Set of Requirements for the successful development of resource sharing business parks: 1. Resource Availability: there need to be enough resources available at the location 2. Agglomeration Effects: positive externalities serve as a force of attraction 3. Cluster Governance Policy: this policy should focus on creating the right conditions and should allow for freedom and decentralisation for the park participants 4. Network Activities: Having a well-functioning network with many activities is important for knowledge sharing and to uncover opportunities 5. Mutually Profitable Transactions: having transactions between companies that is profitable for both parties is important for the successful development of a resource sharing business park 6. Business Opportunities: if there are not enough business opportunities the initiative will fail Two cases were studied to see if this Preliminary Set corresponds with reality. HOST Park on Hawaii and Biopark Terneuzen in the Netherlands were selected because these are both successfully developed resource sharing business parks and the access to information in each case. At HOST Park warm and cold seawater are pumped up and distributed to tenants on site. These tenants use this water and solar energy as input for their activities. These activities include: water bottling, desalination, energy generation, and food production. Biopark Terneuzen is an initiative that was started in an existing port area. Opportunities to share resources between the companies are identified and these companies then decide to collaborate. From the results it was concluded that the Preliminary Set of Requirements did not adequately prescribe how resource sharing business parks should be developed. The results showed that: - The availability of resources is crucial; there are key resources that enable the use of other resources; - In each case Agglomeration Effects were not crucial; - The cluster governance policy indeed should focus on creating a good environment for doing business by for example, removing business barriers or by facilitating and initiating collaborations between companies. How strict the policy is depends on how independent the park management can operate from the park participants; - The importance of Network Activities depends on the need for collaboration; - Mutually Profitable Transactions should be considered as a form of Business Opportunity; and - A strategy document containing a vision for the development of the cluster should be developed to gather support from businesses, knowledge institutions, governments, and society. Based on these results the Revised Set of Requirements was created which improved the Preliminary Set and included what was learned from the case studies. The Revised Set of Requirements consists of: 1. Compelling Vision; 2. Availability of Critical Resources; 3. Fitting Park Governance Policy; 4. Business Opportunities; and 5. Fitting Level of Network Activities To find out if these Revised Requirements are the answer to the main research question and would really be usable in practice, the Revised Requirements were presented to experts. The experts added the following remarks: Compelling Vision - The vision should not only be created, it should also be executed. Many strategy documents are shelved. - Agreement should be reached on a technological ambition level that is reasonable and attainable. A technological ambition level that is too high introduces huge risks and adds to the complexity of the project. Availability of Critical Resources - The continuity of the availability of critical resources should be guaranteed for the life time of the project to earn back investments - Besides financial capital, human capital, and infrastructure, logistics should be added as critical. - Some critical resources might not be present from the start of a project. Possibilities to develop these resources should then be investigated. Fitting Park Governance Policy - It should be clear on how the park is going to be managed and who is responsible for what. - The policy should be consistent and should be developed for the long term. Changing policies creates risks for the cluster participants. - Trust is crucial for collaboration. - There should be a focus on business creation. Business Opportunities - New business opportunities are also potential risks. Fitting Level of Network Activities - Collaboration does not just emerge. It has to be initiated and companies have to be willing to collaborate. These Revised Requirements were adapted to include these remarks and thus created the Final Set of Requirements for the successful development of resources sharing business parks. Using the Requirements cannot guarantee success but the experts generally agreed that if their remarks were included, the Set of Requirements greatly increase the chance of a successful development and are indeed a coherent set that can be used for the successful development of resource sharing business parks.