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In addition, when the effect of policy measures seeking to develop science and technology parks or to enhance their efficiency is to be evaluated, the list of possible indicators for performance evaluation can be expanded to include the following (all indicators can be taken both in absolute terms and in proportion to the allocated public funds):50

•Number of technical cooperation agreements between universities/R&D organizations and industry (within and outside the park);

•Number of commercial and manufacturing agreements between universities/R&D organizations and industry (within and outside the park);

•Number of long-term cooperation links including park tenants (within and outside the park); and

•Number of long-term alliances that include external members.

D. Innovation clusters

An innovation cluster is a system of close links between firms and their suppliers and clients, and knowledge institutions, resulting in the generation of innovation (see Box K4.4.). The cluster includes companies that both cooperate and compete among themselves. The links between firms are both vertical, through buying and selling chains, and horizontal, through having complementary products and services, and use similar specialised inputs, technologies or institutions, and other linkages. Most of these linkages involve social relationships or networks that produce benefits for the firms involved. Clusters become even more visible and attractive if they have strong linkages with related clusters in other regions and countries

Clusters are based on systemic relationships among firms. The relationships can be built on common or complementary products, production processes, core technologies, natural resource requirements, skill requirements, and/or distribution channels. However, clusters are much more than just business networks. Business networks are generally closed organizations, generating external economies for members by sharing costs of resources, expertise and information.

Cluster initiatives are organized efforts to increase the growth and competitiveness of clusters within a region, involving cluster firms, government and/or the research community. A cluster initiative involves:51

•Different member organizations (four main types of actors: private industry, public organizations, academia, and public-private, typically non-profit, organizations);

•The cluster organization with an office, cluster facilitator/manager, website etc.;

•Governance of the initiative (e.g. constellation of a board; facilitator, etc.); and

•Financing of the initiative (national/regional/local public funding, members’ fees, consulting, etc.).

50As one of the main targets of innovation policy is to enhance industry-science and industry-industry linkages, most of the specific policy-related performance evaluation indicators are of this nature.

51Sölvell, Örjan; Lindqvist, Göran and Ketels, Christian (2003), The Cluster Initiative Greenbook, Stockholm: Ivory Tower (www.cluster-research.org).