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European Agricultural Clusters

A research in the appearance of agricultural clusters in the European Union

Arnold Looijen

on 1 July 2013

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Transcript of European Agricultural Clusters

By Arnold Looijen
European Agricultural Clusters
Cluster Identification
Theoretical Framework

- Geographic concentrations
- Interconnected companies
- Specialized suppliers, service providers, firms in related industries
- Compete & cooperate
- Economies of scale
- Network effect
European Agricultural Clusters
How can European agricultural clusters be measured and identified?
Cluster Measurement

- Method is to statistically trace regional agglomerations
by combining geography and industry
Location Quotients in Europe
Cluster analysis based on Type of Farming
- Type of farming is dominant when Standard gross margin is higher than 2/3
- Mixed Holdings vs No Specialization:
MH mixing within a firm, NS different types of farming across the region
- Field cropping needs proper physical circumstances (soil, climate, precipitation and low ground prices)
- Grazing Livestock due to low ground prices and low urban pressure
- Permanent crops due to warm weather, climate, soil structure and precipitation
- Mixed holdings and No specialization due to low risk, risk spreading, lack of good logistics, self sufficiency
Cluster Identification
Theoretical Framework
Cluster Identification
Cluster Measurement
Location Quotients in Europe
Cluster analysis based on type of farming

- Factor Conditions (technology, labour and infrastructure)
- Demand Conditions (size and character of the home-market)
- Related and Supporting Industries (for competitive advantage)
- Firm Strategy, Structure and Rivalry (conditions of a nation or region)

- Static Productivity (increasing productivity of supporting firms)
- Capacity for Innovation (Competitiveness stimulates innovation and vice versa)
- New Business Formation (New firms choose to form within existing clusters)
Factor Endowment Clusters
- Amount of land
- Natural resources
- Population size
Techno Clusters
- Universities
- High technology companies
Historic knowhow-based Clusters
- Traditional activities
- Traditional management
Low-cost Manufacturing Clusters
- Developing countries
- Availability of low-cost labour
- Geographical proximity of clients
Knowledge Service Clusters
- Developing countries
- Low-cost skills and expertise
- Engineering, electronics, etc.
Knowledge Clusters
Development Clusters
Geographical Clusters
- Availability of certain resources
Horizontal Clusters
- Sharing resources and knowledge
Vertical Clusters
- Supply chain clustering
Sectorial Clusters
- Operating together within sector

- Statiscial site with information about the institutions of the EU
Theory and Data
- Location Quotients based on Gross Added Value
- Location Quotients based on number of jobs

Field Cropping, Permanent Crops, Livestock, Mixed Holdings, No Specialization
Cluster Identification
Location Quotients in Europe
Location Quotients based on type of farming and GAV
Location Quotients
How can European agricultural clusters be measured and identified?
Cluster Measurement
Agricultural Clusters in Europe
Knowledge-cluster vs. Development cluster
Computing location quotient
- High labour force gives high GAV and/or vice versa
- Top ten: East- and South-East Europe
- High LQ's does not mean there are clusters
- MH and NS have high potential of cluster appearance
- Other farming types low LQ, does not mean there are no clusters
- Further research is needed in order to specifically quantify clusters
European Cluster Observatory
Location Quotients
Clusters based on type of farming
Location Quotients calculates regional share of economic activity in a region.
Location Quotients calculates ratio of regional share of economic activities in compared to the national share
This BSc-thesis is a further research on agricultural clusters.
Shift from clusters in the Netherlands to clusters in Europe.
Why do clusters exist?
Where do they exist?
How do they develop itself?
Research Question
How can European Agricultural Clusters be measured and identified?
Determinants of Clusters
Cluster Development
Overview of presentation
Thesis Process
Full transcript