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Strategic Selection of High-Potential Product Clusters for Technological Advancement

This document outlines the pre-selection methodology for initial product groups, focusing on clusters identified in the 2002 Industrial Survey. During the first Steering Committee meeting in Riyadh on December 7, 2005, key criteria were established for selecting clusters that demonstrate high potential for technological upgrading and competitiveness. The aim is to foster growth in diverse industries, including high-tech sectors such as ICT, biotechnology, and petrochemicals, ensuring the chosen clusters are led by proactive industry leaders.

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Strategic Selection of High-Potential Product Clusters for Technological Advancement

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    1. Pre-Selection of Initial Set of Product Groups/Clusters Drawing on Industrial Survey of 2002 December 2005

    2. First Steering Committee Meeting Riyadh, 7 December, 2005 Cautionary note Initial set of 4 selected clusters pilot or demonstration clusters only not exclusive base for diversification and competitiveness building Methodology applicable to all clusters We seek clusters with pro-active industry leaders or “drivers” – who share our vision

    3. First Steering Committee Meeting Riyadh, 7 December, 2005 Primary criteria for pre-selection High-potential for technological upgrading – value added/worker At least moderately competitive at present – judged by exports Dynamic – indicated by growth of total output Already significant – which means some business capability exists

    4. First Steering Committee Meeting Riyadh, 7 December, 2005 Supplementary criteria – initial Span a range of industries One strategic high-tech cluster One oil-related cluster An existing non-oil related national (possibly SME) cluster An existing non-oil-related foreign driven cluster

    5. First Steering Committee Meeting Riyadh, 7 December, 2005 New high-tech cluster choice Strong candidates for selection Information and communication technologies (ICT) Biotechnology (in selected application areas) Petrochemicals

    6. First Steering Committee Meeting Riyadh, 7 December, 2005 Candidates for high-tech sector ICT – its importance is well known and widely addressed in the KSA Petrochemicals is already a very strong industry Biotechnology is an emerging, crucially important “general purpose technology” – it is the clear choice

    7. First Steering Committee Meeting Riyadh, 7 December, 2005 Spearman-Kendall ranking Measures aggregate performance by following criteria Value-added per employee Percent of exports in total sales Average annual growth rate in total output over a few years

    8. First Steering Committee Meeting Riyadh, 7 December, 2005

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