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· Ville durable et transition écologique / sustainable development

· Culture, média et publicité / culture media and advertisement

· Santé / health

· Education, formation & RH / education, formation and HR

· Technologies, data & IA / technologies data and AI

· Industries & services / industries and services

-cluster analysis ; mapping the whole cluster

Mission

We are at the forefront of the future and accompany this new industrial world being built before our eyes. This place of choice gives us a fundamental role. A role of agitator and facilitator that brings together all players in the digital economy & sustainable development (and more) and makes them work collectively to bring their visions, prototypes, projects, technologies and services beyond everyone’s expectations. To achieve this, we offer our services in support of innovation, acceleration, digital transformation and ecological transition.

Cap Digital Offers:

R&D support

Business Coaching & Acceleration

Digital Transformation & Open Innovation

Strategic Studies and Survey

Describe what a cluster is – Comparison to Agglomeration (Agglomerated Economies).

A business cluster is when there is a big concentration of businesses, enterprises, organizations, corporations, companies, suppliers, etc. belonging to the same industry and they are located in close proximity to each other making the area well known (central hub) for that specific industry. Business Clusters are usually formed after multiple companies belonging to the same sector start working in close distance to each other; however, the most important factor which stands out is that these group of businesses start becoming more competitive, so the productivity levels increase and as a result the businesses become more efficient in their respective categories. Thus, this leads to the cluster becoming well-known locally, then nationally and eventually globally for that specific industry.

A business cluster is a geographic concentration of interconnected businesses, suppliers, and associated institutions in a particular field. Clusters are considered to increase the productivity with which companies can compete, nationally and globally

The term business cluster, also known as an industry cluster, competitive cluster, or Porterian cluster, was introduced and popularized by Michael Porter in The Competitive Advantage of Nations (1990).  The importance of economic geography, or more correctly geographical economics, was also brought to attention by Paul Krugman in Geography and Trade (1991).[6] Cluster development has since become a focus for many government programs. The underlying concept, which economists have referred to as agglomeration economies, dates back to 1890, and the work of Alfred Marshall.

Give examples of other clusters such as Silicon Valley, the IT cluster in Cambridge and the manufacturing cluster in china.

As wages continue to rise in an increasingly service oriented economy, China looks to manufacturing clusters to bolster the nation’s labor-intensive industries.  Offering clear lines of communication and reduced transportation costs, cluster manufacturing provides economic stability by bringing together an array of businesses from across the supply chain.

While China looks to transition to a more consumer-based society, its manufacturing base faces increasing pressure from low-cost ASEAN members like Vietnam and Indonesia.  Yet in China’s coastal provinces, investors will find well-established infrastructure that much of ASEAN lacks.  The Middle Kingdom’s ability to provide the resources for reliable manufacturing in close proximity to like-minded businesses and institutions are essential arguments to China’s continued manufacturing competitiveness.

Defining a Cluster

A manufacturing cluster is an interconnected system of like-minded businesses in a geographically centralized location.  They share industry characteristics and benefit from collective growth.  Clusters look to create an environment with clear communication that allows them to bridge gaps and create a more efficient ecosystem for design, production, and distribution.

An effective manufacturing cluster does not begin with product development, but leverages local resources, educational institutions and complimentary services. A well-established cluster offers a business network that is an easily navigable system for suppliers, buyers, and R&D facilities.  Like Shenzhen’s one stop shop for electronics production, clusters should continue to attract similar businesses in an effort to create a sustainable system for continued growth.

Shenzhen

Although cluster manufacturing is primarily located in the advanced manufacturing districts of developed countries, India and China have recognized its importance and acted accordingly.  Nowhere in China are the advantages of cluster manufacturing more apparent than the city of Shenzhen.

Known as China’s Silicon Valley, Shenzhen boasts over 4,700 national-level high-tech enterprises amid 30,000 science and technology companies.  With the largest export oriented manufacturing base in China and R&D investment of 4.02% of the city’s GDP (roughly equal in percentage to that of South Korea, the second highest ranking country in the world), Shenzhen has become a one-stop-shop for technological design, production, and distribution.

In the mid- to late 1990s several successful computer technology related companies emerged in Silicon Valley in California. This led anyone who wished to create a startup company to do so in Silicon Valley. The surge in the number of Silicon Valley startups led to a number of venture capital firms relocating to or expanding their Valley offices. This in turn encouraged more entrepreneurs to locate their startups there.

In other words, venture capitalists (sellers of finance) and dot-com startups (buyers of finance) "clustered" in and around a geographical area.

The cluster effect in the capital market also led to a cluster effect in the labor market. As an increasing number of companies started up in Silicon Valley, programmers, engineers etc. realized that they would find greater job opportunities by moving to Silicon Valley. This concentration of technically skilled people in the valley meant that startups around the country knew that their chances of finding job candidates with the proper skill-sets were higher in the valley, hence giving them added incentive to move there. This in turn led to more high-tech workers moving there. Similar effects have also been found in the Cambridge IT Cluster (UK).

Talk about the startup businesses in Cap Digital

Looking for a way to expand your business to France? Reach out to our experts to get a tailormade soft landing program for your company. We help you assess your market and successfully deploy your business in France and all over Europe by adjusting your value proposition and Go to market Strategy.

Talk about Big Businesses in the cluster

“We are your reference point to support your French and European Startup Scouting. We provide you with access to qualified and promising startup ecosystems to make sure you find the best among the crowd and don’t miss any diamond!”

Boost your Start-up Scouting

Find the right startups & technologies in France/Europe and beyond to achieve your innovation goals or to complete your European consortium!

The 3 commandments of startups Scouting

Scouting and webcrawling is easy – Scouting the right fit to your need, more difficult it is

Scouting around you is easy – scouting globally, more difficult it is

Communicating is easy – reaching out to the right audience, more difficult it is

 

A global program for global benefits!

By innovating with startups on an international scale you will achieve many global goals:

Raise agility & competitivness

Reduce time to market & face quick obsolescence

Improve Customer experience

Attract new talents

 

Describe how the cluster is operating

Analyze these operations (Horizontal, vertical integration,etc.)

Cluster effect

The cluster effect can be more easily perceived in any urban agglomeration, as most kinds of commercial establishments will tend to spontaneously group themselves by category. Shoe shops (or cloth shops), for instance, are rarely isolated from their competition. In fact, it is common to find whole streets of them.

The cluster effect is similar to (but not the same as) the network effect. It is similar in the sense that the price-independent preferences of both the market and its participants are based on each one's perception of the other rather than the market simply being the sum of all its participants actions as is usually the case. Thus, by being an effect greater than the sum of its causes, and as it occurs spontaneously, the cluster effect is a usually cited example of emergence.

Governments and companies often try to use the cluster effect to promote a particular place as good for a certain type of business. For example, the city of Bangalore, India has utilized the cluster effect in order to convince a number of high-tech companies to set up shop there. Similarly, Las Vegas has benefited through the cluster effect of the gambling industry. In France, the national industrial policy includes support for a specific form of business clusters, called "Pôles de Compétitivité" (Centre of excellence or innovation centre), such as Cap Digital. Another good example is the Nano/Microelectronics and Embedded Systems" or in short "mi-Cluster" that was facilitated by "Corallia Cluster Initiative" in Greece. Corallia introduced a bottom-up, 3-phase programme framework for facilitating cluster development, and was short-listed among the final classification (finalists) for the DG REGIO's RegioStars 2009 Awards in the category "Research, Technological Development and Innovation".[18]

The cluster effect does not continue forever though.[19] To sustain cluster performance in the long term, clusters need to manage network openness to business outside the cluster while facilitating strong inter-organisational relationships within the cluster. [20] Its relative influence is also dictated by other market factors such as expected revenue, strength of demand, taxes, competition and politics. In the case of Silicon Valley as stated above for example, increased crowding in the valley led to severe shortage of office and residential space which in turn forced many companies to move to alternative locations such as Austin, Texas and Raleigh-Durham, North Carolinaeven though they would have liked to stay in the valley.

Sometimes cluster strategies still do not produce enough of a positive impact to be justified in certain industries. For instance, in the case of Builders Square, the home improvement retailer could not compete with industry leaders such as Home Depot when it could not materialize the same low costs and contracts. As a result, it was presented with an option to form a merger with another home improvement retailer, Hechinger to better improve their business clusters and compete with Home Depot and other industry leaders. However, when it failed to do so, it slowly began to fail and eventually fell into bankruptcy. Although the merger attempted to create geographic clusters to compete with the low costs of other firms, costs were not lowered enough and eventually the plan failed, forcing Hechinger into Chapter 7 liquidation and Builders Square out of the industry

Industries

This cluster is the biggest digital cluster in Europe. It focuses on six different industries : Education and Formation, eHealth and wellbeing, Cultural and Creative industries, Smart cities and Sustainable development transition, Industry and Services, Technology and AI

Cap Digital has multiple factors that make them the biggest cluster of digital technologies in Europe, and a lot of them are due to those factors : formation, location, and funds.

Market Strategy, Structure and Competitive threats