The Value of Being Part of a Business Cluster

Companies in business clusters typically have higher value creation, productivity and growth than the industry in general. Change, entrepreneurship and innovation also comes easier within clusters.

Ever since Michael Porter introduced his theory of business clusters in the beginning of the nineties, the concept has been widely adopted all over the world. In Norway, Professor Torger Reve has been the most prominent advocate of the theory, and has been an important promoter of the Norwegian Innovation Cluster programme.

Research has shown that companies in business clusters typically have higher value creation, productivity and growth than the industry in general. It is also easier to generate change, entrepreneurship and innovation within clusters, with the cluster management playing an important role as facilitator.

Through participation in typical cluster events, companies increase their networks and even find new market opportunities among other cluster members. Cluster initiated business acceleration programmes help overly technology focused companies in improving their business orientation.

Cluster-to-Cluster Collaboration

Benefits do not only arise within clusters; there is also much to be gained by more work across cluster boundaries in order to spark cross-industry innovation. The Houston, Texas based Pumps & Pipes initiative is a good example of this, where medicine, oil and gas and space industries innovate together.

Here in Norway, we have several joint projects with GCE NODE and GCE Blue Maritime, and all three are also part of the global MIT REAP programme on regional entrepreneurial acceleration and scale-up. The GCE clusters also have many initiatives together with other ocean space clusters with the aim to position Norway as a world leader within ocean space innovation.

In the long history of humankind those who learned to collaborate and improvise most effectively have prevailed.” – Charles Darwin

Foreign Investments

In the case of GCE Subsea, the cluster very much represents a complete subsea life-of-field supply chain where the actors frequently meet and discuss value chain improvement across companies. Being a world leading cluster containing businesses, research institutes and academia also attracts foreign investments. It simply makes great sense for international subsea companies to be where the action takes place!

Innovation Ecosystem

Organised by Innovation Norway, and supported by Siva and the Research Council of Norway, the Norwegian Innovation Clusters play an important role in the Norwegian ecosystem for innovation and entrepreneurship. In this ecosystem businesses in the clusters are spliced with R&D and funding schemes in order to contribute to further innovation, encouraged and facilitated by the cluster management.