Creating clusters and centres of excellence

1. Creating clusters and centres of excellence Cross cluster for the technical textile sector Mick Parmar, Pera Innovation

2. INNOTEX Creating Clusters and Centres of Excellence 7 October 2005 The Development of a cross cluster best practice platform for entrepreneurial innovation for the technical textile sector Contract No. 022532 European Innovation Workshop 5-7 October 2005

3. Agenda • Introduction • Status of The Textile Sector Market • The Challenge of Globalisation • European Textile Clusters & Networks • Brief Presentation of INNOTEX Project • Project Objectives • Activities to be Organised • Summary

4. Textile Sector • Textiles and clothing are a major sector of European industry. • Annual European turnover of €215 billion in 2003 • Workforce of around 2.6 million. • 25-30% of total industrial employment in some southern and eastern EU Member States • The sector accounts for a total of approximately 200,000 companies in the enlarged EU • 95 % of which are mainly SMEs. • It is a major player in world trade, the first in textile exports and the third in clothing.

5. The Challenge of Globalisation • Intensified Competition Due to • The Completion of the European Internal Market • Internationalisation of Product & Labour Markets

6. Global Textiles Market Segmentation% share, by value, 2004 • Asia-Pacific worth nearly 60% of Global market’s value with sales of $612.4bn in 2004 • Global Compound Annual Growth Rate of 4.2% predicted for 2004 – 2009 to a value of $1,268 billion by 2009, with dominance of Asia-Pacific unlikely to be weakened Datamonitor, 2005

7. Textile Sector Tough Challenges for the EU Textile Industry • 1.3m jobs lost in textiles and clothing industry in Europe from 1990 – 2004 • Unsustainable Price Competition • Increase of low cost imports from Asia Pacific • Massive Differential in Labour Costs • Europe no longer able to compete on quality, cost & delivery This is Not Exclusive to The Textile Sector

8. Textiles Jobs Lost in EU-15

10. Three Major Sectors of European Textile by volume of fibre usage

11. European Technology Platform for the Future of Textiles and Clothing

12. Technical Textile Industries • Agriculture • Automotive • Aerospace • Building/Construction/Engineering • Medical/Hygiene • Packaging • Protective clothing • Sportswear • Transport

13. Technical Textile Application In Aerospace Sector

14. Technical Textile Application In Automotive Sector

15. Western Europe’s Consumption of Technical Textiles Source: Euratex estimate for 2004 based on Eurostat, 2004 and OETH, 2000

16. European Textile Clusters & Networks • With the unprecedented competition the 190,000 SMEs in the textile and clothing sector, are increasingly recognising the importance of collaboration and networking in a traditionally secretive industry: • Allowing development of efficient supply chains thus improving competitiveness • Providing new markets • Transfer best practice and improve innovation capacity • The broader use of textile materials across an extensive range of end-uses, • Providing niche sectors in which they can more easily differentiate their products in terms of quality and charge higher prices

17. European Textile Clusters & Networks • The textiles cluster in Leicestershire • First sectors that felt the pressures of globalisation more than 20 years ago. • Through a challenging 10 year process the cluster realised that they could not compete on quality, cost and delivery • The textile cluster thus looked for more innovative ways of becoming more competitive • Resulting in more companies moving into the area of "technical textiles" • Ranging from specialist heat and chemical resistant materials and products that moved from labour to knowledge intensive manufacturing processes, • Enabling the cluster to become more competitive and allow them to compete against the low cost economies.

18. European Textile Clusters & Networks • Nordic CoE for Smart Textiles and Wearable Technology (NEST) set up in 2003

19. European Textile Clusters & Networks • Leapfrog – aims at measurable efficiency improvements • 60% time gain through 3D virtual garment design • 80% reduction in machining times for complex garments • Reduction of quality faults and errors from 20% to zero • WebTEXpert - aims at the development and provision of advanced methods in the field of innovation-management • Focuses on new product development to increase the competitiveness of SMEs operating in the textile and clothing industry • The participation of Industrial Associations and Groupings (IAGs) is considered to be a central element of the project • Results disseminated to SMEs at regional, national and international level.

20. European Textile Clusters & Networks • Within FP6 a number of Economic and Technological Intelligence (ETI) projects for SMEs will touch about 30 clusters of SMEs around Europe • Fashion Net - aiming at fostering innovation and technology transfer among European SMEs of the fashion system, promoting partnerships and networks • Intelligent Textile Environment (ITE) - assists entrepreneurs in their Framework Programme research through events, coaching, benchmarking and case studies • Shoes 5000 – aims to involve 5000 footwear SMEs in working towards technological innovation through research participation and dissemination of information

21. INNOTEX Project • Brings together a supply chain of 5 complementary EU clusters • To form a new Network of Clusters involving several leading European regions • Domain of technical textiles. • Leading clusters within their own sector • Representing different phases in the production process and use of technical textiles • Clusters at different phases in the struggle against low-wage competition from Asia Pacific. • Estonian polymer-composite cluster will allow transfer knowledge and best practice from the very best clusters in the Western Europe regions to clusters in the new member states .

22. INNOTEX Objectives • Develop a best practice platform for innovation & entrepreneurship for the technical textiles sector through transfer between clusters • Increase competitiveness through raised innovation capacity and exposure to innovation opportunities requiring cross cluster competency mixes for new markets

23. Strategic Output • Development of pan-European and cross sector supply chains • Joint projects utilising competency complementarities • New innovative strategies and ongoing cooperation

24. Participants • UK • LSEP (Textile Cluster) • LI (Knowledge transfer) • Pera (Innovation/SMEs) • Denmark • Flagskibet.dk (Maritime Cluster) • Elvström Sails (End user) • UdviklingsCenter Hadersley (Knowledge transfer) • Spain • Inspiralia (Innovation/SMEs) • FITCA (Textiles Sector) • FSV (Research) • Estonia • Enterprise Estonia (Composites Sector) • ECTA (Textiles sector)

25. Project Overview • Supports pilot action 1.2.3.1 – “supporting network activities between existing business clusters that operate in the same or different sectors in Europe….and confirming the need and willingness for establishing at European level co-operation platforms facilitating the exchange of knowledge and best practices between existing clusters in Europe” • 30 month duration • Start date 1 October 2005 • 8 work packages

26. Structure of Work Programme

27. Work Package 1 – SWOT analysis of the clusters • Activities • Meet to establish common framework • Do SWOT analysis of clusters • Benchmark the clusters’ innovation capacity • Deliverables • Common framework for the SWOT analysis • Report on the SWOT analysis for each of the four clusters • Report on the benchmarking exercise

28. Work Package 2 – Exchange of Knowledge & Best Practice between Clusters • Activities • Identify vehicles for exchange of knowledge • Plan timetable & content for vehicles • Execute events & document with at least 4 exchange visits to the 4 participating clusters. • Deliverables • Report on the vehicles chosen for knowledge & best practice transfer between partners • Plan for seminars, workshops, exchange visits etc. • Report on each seminar, workshop & exchange visit

29. Work Package 3 – Development of Joint Projects & Innovative Strategies • Activities • Cluster competency analysis • Definition of joint projects & identification of funding • Form new and larger cross cluster supply chains for the development of high quality concepts for cross cluster collaboration • Drafting of joint innovative business strategies for cooperation • Deliverables • Report on cluster complementarities • Report on potential joint project activities • Report on potential joint business strategies

30. Work Package 4 – Defining a Best Practice Platform for Entrepreneurial Innovation • Activities • Define a framework for a best practice platform • Define the content • Define for the technical textiles industry • Deliverables • Report on framework for a best practice platform • Report on content for a best practice platform • Model of the best practice platform

31. Work Package 5 – Preparation of Policy Recommendations & Modification of the Platform • Activities • Benchmark INNOTEX against other projects • Develop general model for platform • Develop policy recommendations • Deliverables • Benchmarking report on the best practice platform • A general model for a best practice platform • Report specifying policy recommendations

32. Work Package 6 - Dissemination • Activities • Synergies with other projects, action plan, promotional material • Four National Conferences • Information seminars at Trade Fairs • Synergies with PAXIS projects • Final conference • Deliverables • Action Plan for exploitation of results • Dissemination information – events, press releases, brochure etc. • Evaluation of results • Final conference reports

33. Summary • Aims to use high value added products to compete against threat from Asia Pacific • Transfer of best practice between complementary clusters in textile related sectors • Develop a model transferable to other sectors • Development of new networks and pan-European joint projects

34. Textile Innovation Process 99% Cross-Clustering 1% INSPIRATION