BACKGROUND

UNIDO supports cluster development as a strategic approach to economic growth and competitiveness, aiming to achieve inclusive and sustainable industrial development globally by fostering collaboration among businesses, research institutions, and other stakeholders within a specific geographic area or industry sector.

Clusters contribute to:

• ECONOMIC GROWTH: Clusters, which are geographic concentrations of interconnected businesses, suppliers, and associated institutions in a particular field, have been shown to promote economic growth. UNIDO supports cluster development to foster innovation, productivity, and competitiveness within industries, leading to overall economic development. 
• JOB CREATION: Clusters often generate employment opportunities as they attract businesses and investments to a specific region. By supporting cluster development, UNIDO aims to create jobs and enhance livelihoods, particularly in areas with high unemployment rates or underdeveloped economies.
• KNOWLEDGE SHARING & COLLABORATION: Clusters facilitate knowledge sharing, collaboration, and networking among businesses, research institutions, and government agencies. UNIDO recognizes the importance of collaboration for fostering innovation, technology transfer, and skills development, which are essential for sustainable industrial development.
• VALUE CHAIN INTEGRATION: Clusters allow for better integration of value chains, from raw materials to final products, thereby increasing efficiency and reducing costs. UNIDO promotes cluster development to enhance the competitiveness of industries, particularly in developing countries, by improving their participation in global value chains.
• SUSTAINABILITY: UNIDO emphasizes sustainable development goals, including environmental sustainability and social inclusion. Clusters can serve as platforms for promoting sustainable practices, such as resource efficiency, renewable energy adoption, and equitable distribution of benefits within communities.
   

UNIDO’S APPROACH & METHODOLOGY 

UNIDO has designed a methodology for the formulation and implementation of cluster development projects. The methodology is based on the following steps:

• Cluster selection, which entails the identification of the cluster(s) to be assisted;
• Cluster governance, the institutional arrangements that allow cluster stakeholders, who may have different and possibly conflicting priorities, to organize and engage in joint actions;
• Cluster diagnostic, an action-oriented analysis of strengths, weaknesses, opportunities and threats of the cluster(s);
• Vision building and action planning, which refers to the formulation of a vision and a corresponding development strategy shared by the entire cluster;
• Implementation, i.e. the management and coordination of the activities outlined in the action plan, including the establishment of horizontal and vertical networks;
• Monitoring & evaluation (M&E) of the qualitative and quantitative outcomes of the project.

To ensure the sustainability of clusters over time, UNIDO works with local institutions strengthening their capacity to assume leadership of the process and support cluster firms in their future endeavors.

TRAINING OBJECTIVE

This training allows UNIDO’s project beneficiaries, stakeholders and partners to familiarize themselves with the cluster development approach and grasp the significance of private sector-led inclusive growth in achieving Sustainable Development Goals (SDGs).

The main topics addressed in the training are:

• what are clusters and why they should be supported
• how to undertake cluster mapping and diagnostic
• collective vision building and action planning for clusters
• cluster management
• monitoring and evaluation of clusters initiatives
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TARGET AUDIENCE 

The training material is available for project partners and other institutions/associations/experts willing to develop or already involved in a cluster project.

For beneficiaries of UNIDO projects, this is a preliminary training session before the actual commencement of coaching and guidance by UNIDO experts.

TRAINING STRUCTURE

This training consists of 9 modules with text, references to case studies (i.e. boxes and links to project examples), exercises and quizzes at the end of each module, and a final exam.

Source: UNIDO Knowledge Hub