In developing identified industries, government shall pursue an industry cluster program to foster inter-enterprise linkages among MSMEs and strengthen collaborative networks.
Industry Clusters are geographic concentrations of competing, collaborating and interdependent businesses, working on a similar regional infrastructure and creating wealth of regions through exports. It fosters the transfer and adoption of new technologies, creates risk capital, and attracts foreign investment
It breaks down organizational, geographical and sector boundaries, all needed for creating a cycle of sustainable economic growth. The industry clustering strategy is vital for linking manufacturing with other sectors (e.g. mining, agriculture, tourism, construction, etc.), particularly as these affect raw material needs of manufacturing and the manufactured-product requirements of other sectors. (Figure 3.6)
Industry clusters provide benefits such as:
• Maximizes capacity through shared hard and soft infrastructure, human resources, R&D and safety standards;
• Provides access to all players, attracting expertise and local suppliers;
• Ensures that top export products or revenue streams are sustained through the development of its value chains down to the provinces and municipalities;
• Offers a focus to attract new investments, encourage local expansion and stimulate start-up of new companies;
• Promotes horizontal collaboration and strategic partnership;
• Enhances productivity by providing firms access to specialized inputs and skills, as well as unique information, knowledge and technology; and
• Promotes product complementation that enables longer visitor stay and higher expenditure in tourism destinations.
The government shall maximize PPP as a strategy in industry clustering. On a larger scale, growth centers or regional hubs shall be identified to synchronize the mobilization of public and private resources. These hubs shall unlock productive capacity in the countryside by providing a critical mass of resources in support of private businesses even outside the capital. The integrated international air and sea connectivity of Clark-Subic, Cebu, Cagayan de Oro (with the upcoming PPP project for the Laguindingan airport), and Davao shall be highlighted to enhance the profile of these growth centers among foreign and local investors.
For IT-enabled clusters such as technology business incubators, technology parks and clusters of knowledge-based industries, the creation of shared infrastructure and the provision of business support services for innovators and developing entrepreneurs shall be promoted. The establishment of technology business incubators across the country will be pursued, taking into consideration commercial sustainability, careful matching of target markets with the strengths and ambitions of potential firms, and proximity and linkages to research institutes and universities. The provision of business support services shall be private sector-led and demand-driven. The clustering of knowledge-based industries through science and technology parks shall be stimulated
The entire supply chain shall be improved to reduce production and distribution cost of basic and prime commodities