Innovation, Trade and Rural Development
April 13, 2011
The following statement was given today in the House of Assembly by the Honourable Susan Sullivan, Minister of Innovation, Trade and Rural Development:
Cluster Development Helping Companies Become More Competitive
Whether it is tourism in the eastern and western regions of the province, first response training in Stephenville, aquaculture in the Coast of Bays Region, or ocean technology on the Northeast Avalon, economic clusters are taking shape and giving rise to new opportunities for local businesses.
Helping to facilitate the creation of economic clusters, or multi-product industry sectors, was and remains at the heart of the Provincial Government’s Comprehensive Regional Diversification Strategy. The strategy set the framework for investments in education, infrastructure, and innovation and supports the concentration of inter-related companies, specialized suppliers and associated educational capacity in all regions of the province.
This approach has proven effective and helped local companies become more competitive.
Local businesses are able to benefit from an enhanced supply chain, a more highly-skilled workforce, and the ability to draw together companies in order to bid successfully for large contracts for which individually they would not be able to compete.
Generally speaking, clusters leverage innate regional strengths such as ocean technology companies being in close proximity to the province’s research and academic institutions and the strategic geography offered in the Coast of Bays for the aquaculture industry.
In the central region, community partners – in close collaboration with the Provincial Government – have identified cluster development as a means of responding to the closure of the AbitibiBowater mill. Over a relatively short period, opportunities were advanced to position the region as a hub for health services training.
As a government, we have been pleased to help facilitate the creation of a medical laboratory assistant and e-health training programs at College of the North Atlantic, as well as the opening of Memorial University’s genetic research office.
This approach has been well-received by such partners as the Newfoundland and Labrador Regional Economic Development Association who believe that clustering strengthens local economies by leveraging regional capacity. It believes that clustering leads to linkages being formed between the private and public sector, as well as community development groups.
The association describes clusters as “being essential in enabling small firms to compete nationally and internationally. It allows them to punch beyond their weight.”
In regions throughout Newfoundland and Labrador, the industry-focused approach has derived significant benefits for local economies. With continued collaboration among government, community, business, and academia, we look to continue that momentum and further diversify local and regional economies.
2011 04 13 2:20 p.m.