NISTTHA

National Initiative for Social, Technological and Trades Holistic Advancement

Geographical concentration of interlinked companies and institutions in related branches of industry that complement each other by joint relations of exchange and activities along one (several) value creation chains.

National Initiative for Social, Technological and Trades Holistic Advancement (NISTTHA) is a flagship initiative of the Global Council for Cluster Excellence & Research for promoting Industry Clusters and Global Virtual Industry Clusters.

Clusters have gained increasing prominence in debates on economic development in recent years. Governments worldwide regard clusters as potential drivers of enterprise development and innovation. cluster initiatives are also considered to be efficient policy instruments in that they allow for a clusters concentration of resources and funding in targeted areas with a high growth and development potential that can spread beyond the target locations (spillover and multiplier effects).

Examples of internationally renowned clusters, such as that of the Silicon valley cluster in california, the information technology cluster of Bangalore in india, or the Australian and chilean wine clusters demonstrate that clusters are environments where enterprises can develop a competitive and global edge, while at the same time generating wealth and local economic development in the process.

However, the mere fact of geographical agglomeration of enterprises is, in itself, no guarantee of strong economic performance; that is, the advantages associated with clustering do not always emerge automatically.

Relatively few clusters in the developing world have been able to achieve high and sustained growth rates. in many cases, they are trapped in a cycle of cut-throat competition, stagnation and poverty and are unable to spontaneously achieve the transition to innovation and growth.

Consequently, appropriate policy support and assistance are often required. Council has developed an approach to cluster development that tackles the underlying causes of cluster stagnation and helps seize growth opportunities and overcome obstacles to development.

Advantages of An Industry Cluster Strategy

  • Clustering Strengthens Localization Economies. The concentration of an industry at a particular location may result in significant cost savings to firms in the cluster. These cost savings are referred to as localization economies.
  • Clustering Facilitates Industrial Reorganization. The transition in industrial organization from large firms engaged in mass production to small firms focused on speciality production is well documented. This change in industrial structure is attributed to increased global competition and the emergence of new production technologies (e.g., computer-aided manufacturing). 
  • Clustering Encourages Networking Among Firms. Networking is cooperation among firms to take advantage of complementaries, exploit new markets, integrate activities, or pool resources or knowledge. This cooperation occurs more naturally and frequently within industry clusters.
  • Clustering Permits Greater Focusing of Public Resources. The targeting of industry development efforts permits regions to use their limited economic development resources more efficiently. First, a clusters approach enables regions to focus their recruitment, retention and expansion, and small business development programs rather than attempting to provide assistance for many different business types.

Shortcomings of An Industry Cluster Strategy

  • Regions Will Have Difficulty Picking Winners. A prerequisite to developing a cluster is the identification of regional competitive advantage based on labor force characteristics, unique regional attributes, availability and quality of public and private infrastructure, and proximity to input and product markets. Industrialization efforts next must identify the targeted industry/firms and provide the services and infrastructure necessary to insure that these businesses remain successful. Thus, the designing of an industry cluster program requires an extensive understanding of the region and its economic processes.
  • Latecomers May Not Be Competitive. The benefits available to members of a cluster provide early clusters with distinct competitive advantages over late imitators. Early sites provide cost savings, specialized infrastructure, institutional support, and well-developed networks not readily available in newer or smaller clusters.
  • Supportive Institutions are Not Easily Established. Research on industry clusters is remarkably consistent in its description of the institutional environment required to nurture and support clusters. Recommended are changes in political, social, and economic conditions to encourage trust and collective action.

Global Virtual Industry Cluster

In Global Virtual Industry Cluster environment the following processes can be combined:
  • Interaction with customers (buyers), including the search of clients, marketing events, order placement, supplies, etc.
  • Interaction with suppliers, including supplies of raw materials and components
  • Development of new technologies, innovative activities, cooperation with research institutes, universities, research institutions, R & D, etc.
  • Interaction with government agencies, including the placement and execution of government contracts, obtaining grants, benefits, registration of licenses, permits and warranties.
The advantages of “virtual environment” for innovation and industrial cluster will be:
  • Effective coordination in order to achieve common objectives and joint projects
  • Reduction of total cost of production of goods, works and services x Reduction of transactional costs (the costs of negotiation, information retrieval, interaction, etc.)
  • Ability to perform a large amount of public order and participating in major long-term projects
  • Ability to receive state subsidies, grants, benefits x Flexible adaptation to environmental changes
  • Increasing innovation activity of the cluster, the development of new technologies
  • Reduction of barriers to enter new markets, including international ones. 

Service

Healthcare, Legal, Accounting and Auditing, Hotel and Tourism, Environmental , Entertainment, Maritime Transport, Distribution, Architectural, Educational, Advertising, Marketing, Print and Publishing, Consultancy Services are part of this cluster
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Agro & Food Processing

Small-scale farmers, Importers, Exporters, Agri/ Food Processor, Support service provider, Common facility, Production in-put supplier, Packaging, Branding and the rural communities are part of the cluster
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Artisanal Clusters

Furniture, Metalware, Textiles Hand Embroidered, Wood Carving, Pottery & Clay, Wood Carving, Cane & Bamboo, Textiles Handlooms, Stone Carving, Carpets, Bidri, Grass, Leaf, Reed & Fibre, Ivory, Jewellery, Leather Other articles etc
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ESDM

Electronic products, Electronic components, Semiconductor design, Electronic Manufacturing Services (EMS) including testing and calibration, Foundry & Forging, General Engineering, System Integrator
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Brand10000WIBC

WCombinator is an international network and digital platform that can connect users with different types of resources, as well as share top research and strategy insights. It is specifically designed to meet the unique needs of diverse women entrepreneurs, no matter where they are located or in what industry they work.
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SDGs: Global Impact Startups

We support visionaries who are serious about doing something that helps to improve the lives of others, as well as those who have the ability to help the Sustainable Development Goals be achieved. In light of this, we will continue to support global impact startups like Global Impact Startups, as well as provide assistance to new partners and capabilities in Impact Startups.
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Brand10000SMEs

In both developed and developing countries, MSMEs comprise a large share of all private sector companies. There is a major, immediate role for MSMEs in providing both short-term and long-term benefits to society, including job creation (SDGs). MSMEs (small and medium-sized enterprises) have a direct impact on reducing poverty, increasing household income, and positively impacting on the education and health of families.
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Electric Vehicle

An evaluation of the EV supply chain indicates that it is highly likely that the industry will cluster. We focus on the key factors that drive clustering as they relate to these essential components of the EV value chain. We place particular emphasis on energy storage and the associated power electronics, the areas where the greatest advances in technology are anticipated.
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The 6 Blocks of the

Industrial Cluster
01

Growth Research

Passion cannot survive without a path
02

Communication

This is your plan for getting there, at the pace you set
03

Business Automation

No success is possible without cultivating an optimistic perspective
04

Emerging Technology

Without the power of people around you to support you
05

Engagement & PR

None of these P’s will work if you don’t fuel them with perseverance
06

Leadership

How you use your time to make it count.
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