We are often asked to describe and explain a cluster.
The first thing to appreciate is the distinction between:
§ ‘physical’ clusters i.e. agglomerations of companies and support agencies that are dynamic hot spots of economic activity.
§ ‘collaborative program’ clusters i.e. where programs are implemented to drive collaborative outcomes.
The two groups are not the same! Many of the physical clusters have developed without formalised structures, and most of the players were never involved in formalised meetings.
Outlined below are our top 10 physical clusters in Australia – it is necessarily subjective, and we welcome correspondence if you agree or not! The common characteristics are lengthy gestation periods, champions, and triggers that generate further investment and economic spillovers. Interestingly, many of the triggers came from the public sector.
1. Cairns Airport/City Port (Qld) – infrastructure and local leaders have spurred tourism development and seafood and horticulture exports. The City Port project has transformed the foreshore and CBD. The trigger was Townsville winning state/federal government blessing in the 1980s as the regional aviation gateway. Bob Manning (then CEO of Cairns Airport) led the charge. The airline pilots strike and recession in early 1990s were further triggers.
2. Jervoise Bay (Rockingham, WA) – precinct designed to capture commercial opportunities associated with nearby defence and marine facilities, local engineering and shipbuilding companies, concrete platforms for the North West Shelf etc. The trigger was competition from Singapore, which led to visionary plans by WA Government, which then negotiated and matched an $80 million federal grant.
3. Melbourne Docklands and Southbank (Vic) – transformed this area from an embarrassment to a highlight. It gels with the MCG, the Tennis Stadium and the parkland areas. The trigger was the commitment of a Victorian Planning Minister and his officials in early 1990s.
4. Port Lincoln (SA) – a great example of industry putting its money where its mouth is. A network of professional fishermen saw the need to invest in R&D and training, and well-argued submissions backed by business plans attracted federal and state assistance for a multi-faceted Marine Centre.
5. Scone Equine (NSW) – local and overseas breeders are clustered here. The trigger was local government leaders who mapped out infrastructure requirements and an ingenious funding mechanism for a research centre. A world-class training track, a TAFE and a convention centre reinforce each other.
6. Canberra Airport (ACT) – the trigger was the sale by the federal government to the Snow family in 1998. This has led to a further $500+ million investment in the terminal, hangars, apron, roads, car parks, and Business Park. Consultancy businesses, freight forwarders, defence contractors etc. now operate on-site.
7. Shepparton (Vic) – a very strong food processing cluster involving around ten significant multinationals. The trigger has been water infrastructure installed in stages since the 1960s. A major road freight hub has also developed there due to backloading opportunities.
8. Barossa Wine Region (SA) – this cluster has been analysed on countless occasions. Local winemakers (Gramp, Buring, Blass et al), favourable soil and climate, Roseworthy Agriculture College.
9. Gold Coast (Qld) – Australia’s largest-scale tourism cluster. A big champion was Alderman Bruce Small in the 50s and 60s – his bikini-wearing ‘meter maids’ (who put money in expired parking meters’) caught the attention of staid southern city dwellers. Climate, beaches, and proximity to Brisbane.
10. Honeysuckle urban renewal project (Newcastle, NSW) – intelligent town planning and cocktail funding across three levels of government and the private sector. The trigger was exit of BHP Steel and job losses, which led to ‘Better Cities’ funding and a federal/state/BHP restructuring fund.
Special mentions go to north Sydney ICT and life sciences, Torquay surfwear (Vic), Darwin defence/marine (NT), Salamanca Place (Tas), Bega dairy (NSW), Yarragon antiques (Vic), Brisbane Airport Qld), Virginia horticulture (SA) and Perth mining technology services (WA).