Does a cluster need to incorporate?

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Robert Nemeth
  on  January 6, 2010
  in  Case studies
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We have already discussed various aspects of forming a cluster in several posts. Now I’d like to share my experiences gained on a transnational seminar on logistic clusters in Venice, last year. There we had an interesting discussion about the legal status of clusters.

In Hungary almost all of our clusters have a dedicated management organisation in different legal forms. Most of these organisations face financial problems after the initial public funding ends, as I pointed out in a previous post.

In Venice it was interesting to meet the Venetian Logistic Cluster. They have impressive figures: 263 companies with more than 30,000 employees, €1.3 billion of turnover, 11 million square metres of fully equipped warehousing space and 85 million tons of freight moved each year.

This is a real working cluster without a dedicated management organisation and without a legal form. Certainly there are common activities, but these are coordinated by the members itself.

Do you think, that a management organisation in a legal form is indispensable for a cluster?

  • In order for an organization to survive and prosper it needs to have a shared vision and goals. It also needs a structure for making decisions and arbitrating any disputes that arise.

    I had a look at the Venetian Logistic Cluster website in order to figure out how this works without a legal entity.

    The 'About' page is vague. This is a collection of companies that provide logistical services in a defined region. You can easily guess what the 'Services' page says - these companies provide a range of logistical services.

    The answer to your question is in the 'Projects' page. This collection of companies have participated in a number of EU funded projects, mainly related to marketing the logistics services of the region.

    In other words, the legal structure of the cluster is provided by a series of EU project consortium agreements. The common goals of the cluster are generally marketing, and specifically the goals and deliverables of the funded projects they are currently executing.

    If that's the case, then one conclusion is that without further EU funding this cluster would cease to have meaning to its participants.

    That's my reading of the matter. Can anyone provide further insight?
  • I agree to Steven and like to add the notion that all these questions depend on the goal, size and form of a cluster. If it is "just" an accumulation of several EU projects with a common website you do not need necessarily a "managament" and a legal status ...
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