By John Hobbs, presented at the 17th TCI Global Conference, Monterrey 2014.

1. Visualisation of Linkages in Networked Clusters:
Analysis of the ICT Cluster Ecosystem in Cork
John Hobbs
Academic 2: Industrial Trends, Innovation and the Cluster Ecosystems
11 November 2014

2. VISUALISATION OF LINKAGES IN NETWORKED CLUSTERS:
ANALYSIS OF THE ICT CLUSTER ECOSYSTEM IN CORK
DR JOHN HOBBS & EOIN BYRNE
EUROPEAN PROJECTS RESEARCH UNIT
DEPARTMENT OF MANAGEMENT & ENTERPRISE
CORK INSTITUTE OF TECHNOLOGY, IRELAND.
DATE: 11/11/2014
This research was supported by Be Wiser (www.be-wiser.eu). Be Wiser is a Coordination Project funded by the research DG of the
European Commission within the Regions of Knowledge programme of FP7.

3. Traditional Cluster Analysis
Traditional Porterian cluster analysis focused on the INTERNAL workings and competencies of a
cluster and its local boundaries
Economic Analysis:
• Location Quotients
• Input / Output
• Regional Employment
• Patents
• Case Studies
Informs and Develops Policies Based on Regional Strengths

4. Visualisation of Linkages in Networked Clusters
Traditional Porterian Analysis + V-LINC Analysis = Contextual Policy
Informed policy
development within the
context of regional
strengths + dynamics
=
V-LINC supplements traditional Porterian cluster analysis by adding an EXTERNAL analysis:
European International
National
Informs & Supports Local/National Policy Development with an International Perspective

5. What Types of Linkages does V-LINC Measure?
Measuring input and output linkages has provided the backbone to traditional Porterian
research studies on concentrations of industry.
Derived from Marshall’s (1890); Porter’s (1998) and Leydesdorff (2012) each of which recognise
the role of knowledge, innovation, collaboration, administrative supports and specialised inputs.

6. How V-LINC measures the Business Value of Linkages
• V-LINC data collected through structured interviews.
• Measure the business value of linkages as perceived by company personnel.
• Using likert scale questions derived from Porter’s (1998) industry cluster theory.
= 36/40
= 31/40
= 27/40
= 24/40
Perceived Significance Value No.
High >30 to 40 2
Medium >20 to 30 2
Low >10 to 20 0
Tenuous >1 to 10 0
Employees Provide
Expert Views on Firm
Linkages
Head of Research &
Development
Confidentiality kept - Perceived Significance Bands

7. The Overall V-LINC Methodology
1) Individual
Firm Analysis
2) Multiple
Firm Analysis
Triple Helix Cluster
3) Reporting
Data Visualisation
Tabular Data
4) Policy & Strategy
Development
Firm Level
Cluster Level
National Level
European Level
Employees Provide
Expert Views on Firm
Linkages SMEs MNCs

8. Why Apply V-LINC to ICT in Cork?
• Nationally, ICT is one of 14 sectors
selected by Government to be a driver of
growth in the Irish Economy, in the Report
of the Research Prioritisation Steering
Group (Forfás, 2012).
• ICT also features in Ireland’s RIS3 strategy
(Forfás, 2014).
• Key Statistics:
– 97,000 employed
– 27,000 in ICT hardware segments and 70,000 in
software and ICT services (DJEI, 2012)
– Over €70 billion of exports from Ireland per
annum (ICT, Ireland 2013).
– 2nd largest exporter of computer and IT services
in the world (Irish Exporters Association, 2013).
– Indigenous sector alone employs over 30,000
people with total sales of over €2 billion per
annum (ICT Ireland, 2013).
• ICT is a major industrial sector in Ireland
with a notable specialisation in Cork.

9. Why Apply V-LINC to ICT in Cork?

10. Applying V-LINC to Cork ICT
• Area: 7,500 km²
• Population: 519,000
• ICT Enterprises: 865
• ICT employees: > 11,000
• Policy : State Government – National
• Research: 2 Universities and 49
research Institutes / laboratories,
• Location Quotient = 1.5
47 interviews
572 Linkages
10 SMEs
6 Large Firms/
MNEs

11. The Cork ICT Cluster Ecosystem
• Maps linkages between firms constituent in a cluster, with organisations they engage with.
• Reports linkages across 8 categories at 4 levels Local, National, European & International
Local National
European International

12. Applying V-LINC to Cork ICT
Distribution of Linkages by Category and by Firm
Company GA IA IP IN OU RD SS TN Total (n)
DeCare Systems 14.3% 19.0% 0.0% 19.0% 23.8% 14.3% 9.5% 0.0% 21
EMC 5.3% 4.3% 0.0% 26.6% 27.7% 12.8% 10.6% 12.8% 94
ePubDirect 9.1% 22.7% 0.0% 18.2% 36.4% 4.5% 0.0% 9.1% 22
Flextronics 6.7% 6.7% 11.1% 15.6% 24.4% 15.6% 17.8% 2.2% 45
InHand Guides 4.3% 13.0% 8.7% 13.0% 30.4% 8.7% 17.4% 4.3% 23
McAfee 2.0% 8.0% 12.0% 0.0% 26.0% 8.0% 32.0% 12.0% 50
Moog 13.5% 17.3% 11.5% 15.4% 3.8% 1.9% 28.8% 7.7% 52
Newsweaver 5.9% 35.3% 0.0% 11.8% 41.2% 0.0% 5.9% 0.0% 17
QUMAS 3.9% 11.8% 3.9% 9.8% 25.5% 5.9% 29.4% 9.8% 51
Smarttech 9.5% 14.3% 0.0% 19.0% 19.0% 0.0% 28.6% 9.5% 21
SolarWinds 2.4% 4.9% 14.6% 0.0% 19.5% 2.4% 46.3% 9.8% 41
Strencom 2.6% 13.2% 7.9% 23.7% 26.3% 7.9% 5.3% 13.2% 38
Supply.ie 4.8% 14.3% 14.3% 14.3% 38.1% 4.8% 4.8% 4.8% 21
Trend Micro 12.1% 6.1% 30.3% 0.0% 21.2% 3.0% 18.2% 9.1% 33
Voxpro 4.5% 18.2% 0.0% 13.6% 27.3% 0.0% 31.8% 4.5% 22
Zartis 23.8% 9.5% 0.0% 19.0% 33.3% 9.5% 4.8% 0.0% 21
RFG Average 7.0% 11.4% 7.5% 14.2% 24.8% 7.2% 19.8% 8.2% 36
Total (n) 40 65 43 81 142 41 113 47 572
Most Populous
8 4 6 3 1 7 2 5
(Rank 1-8)
Note to Table: The eight linkage categories are: Government agencies (GA); Industry association (IA); Industry peers (IP); Inputs (IN);
Output (OU); Research & development (RD) Specialist service linkages (SS) and Training (TN).

13. Applying V-LINC to Cork ICT
What is the dominant geographic scope for each of the linkage categories?
Distribution of Linkage Categories by Geographic Scope
Geographic Scope Local National European International Total (n)
Government Agencies 37.5% 60.0% 2.5% 0.0% 40
Industry Association 50.8% 29.2% 12.3% 7.7% 65
Industry Peers 46.5% 16.3% 14.0% 23.3% 43
Inputs 27.2% 27.2% 17.3% 28.4% 81
Outputs 13.4% 16.9% 42.3% 27.5% 142
Research & Development 39.0% 22.0% 19.5% 19.5% 41
Specialist Service 37.2% 28.3% 17.7% 16.8% 113
Training 55.3% 34.0% 4.3% 6.4% 47
Percentage 33.7% 26.7% 20.8% 18.7% 100.0%
Total (n) 193 153 119 107 572
Note to Table: International linkages are those linkages with entities beyond the European Union.
This information is used with the perceived significance to assess the linkage categories.

14. Is there an ICT Cluster in Cork?
Porter’s Diamond Model of national competitiveness

15. Applying V-LINC to Cork ICT
1. Factor Conditions
Figure: Input and Specialist Service Linkages: Local, National, European and International
Local
National
European International
Geographic Scope Local National European International Total (n)
Inputs 27% 27% 17% 28% 81
Specialist Service 37% 28% 18% 17% 113

16. Applying V-LINC to Cork ICT
2. Demand Conditions
Figure: European and International Output Linkages
Geographic Scope Local National European International Total (n)
Outputs 13% 17% 42% 28% 142
• 70% of output linkages in this study are external to Ireland
• Importance - 92% of European and International linkages in the High and Medium band

17. Applying V-LINC to Cork ICT
3. Firm Strategy, Structure and Rivalry
Figure: Local Industry Peer Linkages
Geographic Scope Local National European International Total (n)
Industry Peers 47% 16% 14% 23% 43
• Cork: 90% of Industry Peer linkages in the Low or Tenuous bands.
• IP linkages become more important as the geographic level increases.

18. Applying V-LINC to Cork ICT
4. Related and Supporting Industries
Figure: Local Industry Association Linkages
Geographic Scope Local National European International Total (n)
Industry Association 49% 31% 12% 8% 65
• Cork: 50% of Industry Association linkages in High and Medium bands.
• National 21% of Industry Association linkages in High and Medium bands.

19. Applying V-LINC to Cork ICT
4. Related and Supporting Industries
Figure: Local Research & Development Linkages
Few B2B Research
Links in Cork / Ireland
Geographic Scope Local National European International Total (n)
Research & Development 36% 24% 20% 20% 41
• Cork: 91% of R&D linkages in High and Medium bands.
• National: 75% of R&D linkages in High and Medium bands.

20. Applying V-LINC to Cork ICT
5. Government
Figure: Local Government Agency Linkages
Geographic Scope Local National European International Total (n)
Government Agencies 38% 60% 2% 0% 40
• Cork: 60% of Government Agency Linkages are in the High and Medium bands.
• National: 67% of Government Agency Linkages are in the High and Medium bands

21. Applying V-LINC to Cork ICT
The table compares the overall perceived significance of linkages at each geographic scope.
Perceived Significance by Geographic Scope of Linkages
Cork
Geographic Scope L N EU INT Total
Perceived Significance
High 30 to 40 16.6% 17.0% 45.4% 49.5% 165
Medium 20 to 30 40.9% 39.9% 40.3% 34.6% 225
Low 10 to 20 38.9% 41.2% 13.4% 15.0% 170
Tenuous 0 to 10 3.6% 2.0% 0.8% 0.9% 12
Percentage 33.7% 26.7% 20.8% 18.7% 100%
Total (n) 193 153 119 107 572
• Firms are more likely to engage in linkages which are geographically proximate (within the
country), as these linkages are easier to form and maintain they may not be as important.
• Firms are less likely to engage in linkages at further distances (European and international)
unless they are beneficial as they are harder to form and maintain.

22. Key Connectors in Cork ICT Sector
Key Connector it@cork EI C. Chamber UCC CIT IDA
High 30 to 40 6% 12% 0% 10% 22% 44%
Medium 20 to 30 44% 65% 44% 40% 44% 44%
Low 10 to 20 44% 24% 50% 50% 22% 11%
Tenuous 0 to 10 6% 0% 6% 0% 11% 0%
Total (n) 18 17 16 10 9 9
Linkage Category
15 IA,
3 TN
14 GA,
3 TN
11 IA,
5 TN
5 RD, 4 TN, 1
SS
6 RD,
3 TN
9 GA

23. Evidence for an ICT Cluster in Cork?
• Cork ICT firms do not compete
locally, but compete internationally.
• Compete locally for talent.
• Not primarily local
demand conditions
• 70% EU and INT.
• Not a heavy reliance
on local input factors:
• IN – 27% local
• SS – 37% local
• A connected local industry – 34% of
linkages are local. Largest proportion of
local linkages are : IA 51%, IP 47%, RD
39%, SS 37%, TN 55%.
• Supportive / facilitative
government: 60% local
and 67% of national GA
linkages are in top two
significance bands.

24. Policy Recommendations (1)
Develop a cluster organisation responsible for the ICT sector in the South West Region.
Provide financial supports at a national level to develop a cluster organisation in the region
to facilitate cluster initiatives and increased collaborative linkages.
ICN (2014) suggest that a cluster
organisation can have a significant
influence on strengthening collaboration
within the cluster and facilitating e.g.
information exchange, training and
seminars, joint corporation projects,
marketing and public relations, as well
as internationalisation.
Cluster programmes are an integral part
of an effective innovation policy at
regional & national level, cluster
organisations are essential for the
execution of cluster policies.
Figure: Local Industry Association Linkages , Cork ICT

25. Policy Recommendations (2)
Support the development of degree, conversion and training degree courses to include a
focus on ICT, wireless and internet security.
Adapt third level degree courses / curricula according to the needs of industry with regards
to Internet and wireless security content
Figure: Local Training Linkages , Cork ICT
• Majority of training linkages occur
within the country, 55% locally and
34% nationally.
• 51% of linkages occur in the Low
and Tenuous bands.
• >30% of local Training linkages with
University College Cork and Cork
Institute of Technology.

26. Policy Recommendations (3)
Support the Irish research and development ecosystem between industry and academia.
To develop long-term development partnerships between firms in the Irish ICT sector, increase
R&D activity especially in SMEs and strengthen the innovative potential of Irish firms;
Direct Subsidies for innovative cooperation projects within the Irish ICT sector.
Figure: Local Research & Development Linkages, Cork ICT Figure: National Research & Development Linkages, Cork ICT
• 61% of research and development linkages occur within Ireland.
• 94% local R&D linkages are with academia (Universities, IOTs or research institutes)
• 78% national R&D linkages are with academia.

27. Policy Recommendations (3)
Support the Irish research and development ecosystem between industry and academia.
Direct Subsidies for innovative cooperation projects within the Irish ICT sector.
Co-operation Projects - The region of Upper Austria:
• Innovative strategic programmes (‘Upper Austria 2000 +’, ‘Innovative
Upper Austria 2010’ and ‘Innovative Upper Austria 2010plus’).
• A minimum of three companies should participate in the project and at
least one of them should be a SME.
• Managed by Clusterland: >400 cooperation projects, involving 1,737
participating partners with €22.15 million in funding from the
government (Clusterland, 2014).
Output:
• SMEs achieve sustainable differentiation through
innovation.
• 77% continue to co-operate after project completion.
• Experience to apply for National and EU projects.
• Over come barriers; limited funding , lack of
management, resources and technological
competencies.

28. Other Sectoral Applications of V-LINC
The V-LINC software is being used to analyse 5 local clusters in the Cork region.
Further engagement with 7 clusters across Europe through FP7 projects.
Local Cluster Analysis: International Cluster Analysis:
• Biopharma
• It@cork – European Tech Cluster
• IMERC - Maritime
• Kinsale - Tourism
• WCDP – Agri-Food.
• Be Wiser Project - Paris, Karlsruhe, Barcelona,
Cyprus, Slovenia, Northern Ireland and South
West Region. www.be-wiser.eu
• REMCAP – MSE, Southampton; IMERC, Cork.
www.remcap.eu

29. Potential Future Work Directions
Future developments of V-LINC could support work in the following areas:
Longitudinal Analysis: Global Value Chain Analysis:
• Measure and analyse cluster ecosystem changes.
• Impact of specific policies on linkage development.
Smart Specialisation Network Analysis
• Dr Bernie Fingleton (University of Cambridge)
• Dr Justin Doran (UCC)
• Dominique Foray (École Polytechnique de Lausanne)
• Declan Hughes (Dept. Jobs, Enterprise and Innovation)
• Dr Tim Sturgeon (MIT) & Dr Andrew Reamer (GWU)
• Louis Brennan (Dublin University)
2014 2016

30. Bibliography
• DETE (2008), Knowledge and enterprise clusters in Ireland, Technical report, Department of Enterprise Trade and
Employment: Available online @ http://www.entemp.ie.
• DES (2014), ‘ICT Skills Action Plan’, Department of Education and Skills, Available online @ http://www.hea.ie
• DES (2011), ‘ICT Action Plan: Meeting the high-level skills needs of enterprise in Ireland’, Department of Education and
Skills, Available online @ http://www.education.ie
• DJEI (2014), ‘Policy Statement on Foreign Direct Investment in Ireland,’ published by Department of Jobs, Enterprise
and Innovation, 30th July Available online @ http://www.enterprise.gov.ie
• DJEI (2012), Action Plan for Jobs 2012, Department of Jobs, Enterprise and Innovation, Available Online @
http://www.djei.ie
• EC (2002), ‘Final report of the expert group on enterprise clusters and networks’, Technical report, European
Commission: Enterprise Directorate General, Brussels.
• EGFSN (2013), ‘Addressing Future Demand for High-Level ICT Skills’, Expert Group on Future Skills Needs, Available
online @ www.egfsn.ie
• Forfás (2014), Ireland’s RIS3 strategy, presented at National Peer Review Workshop Smart Specialisation: Moving
Forward and Looking Outward, Dublin, 3-4 July 2014.
• Forfás (2012), Report of the Research Prioritisation Steering Group, Available online @ http://www.forfas.ie.
• Hobbs, J. (2010), A Framework for the Analysis of Spatial Specialisations of Industry, PhD thesis, Cork Institute of
Technology, Cork.
• ICN (2014), ‘Why Clusters,’ International Cleantech Network, Accessed on 10th August, Available online @
http://internationalcleantechnetwork.com.
• ICT Ireland (2013), ‘The Global Technology Hub’, Accessed on 17th August, Available online
@ http://www.ictireland.ie/
• Irish Exporters Association (2013), ‘Top 250 Exporters in Ireland and Northern Ireland 2013’, Accessed on 17th
August, Available online @ http://www.irishexporters.ie
• OECD (2002), Measuring the Information Economy, Paris: OECD.

31. Dr John Hobbs,
European Projects Research Unit, Department of Management and Enterprise,
Cork Institute of Technology. Rossa Avenue, Bishopstown, Cork.
Mobile: 00353 86 8091294 Office: 00353 21 4335149
Email: john.hobbs@cit.ie Skype: jhobbs.cit
Mr Eoin Byrne,
European Projects Research Unit, Department of Management and Enterprise,
Cork Institute of Technology. Rossa Avenue, Bishopstown, Cork.
Mobile: 00353 86 0719451 Office: 00353 21 4335056
Email: eoin.byrne@mycit.ie Skype: eoin.byrne881
This research was supported by Be Wiser (www.be-wiser.eu). Be Wiser is a Coordination Project funded by the research DG of the
European Commission within the Regions of Knowledge programme of FP7.