Hub active in Gauteng ICT cluster study
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An Information and Communications Technology (ICT) Sector Development Framework for South Africa is being designed to assist the country to achieve its economic, social upliftment, empowerment and overall prosperity goals. The aim is to fully embrace the information age and become a key player in the global ICT market.
Implementation of the ICT cluster study will foster the development of ICT cluster activities throughout the country. Three potential clusters are earmarked for Gauteng. At least one cluster is operational in Cape Town and there is potential for a focused cluster in KwaZulu-Natal.
Gauteng aims to become a "smart" province by building a knowledge base for future industries. This is supported by a major thrust of its R1.7 billion Blue IQ initiative to develop the ICT sector through cluster stimulation.
As one of the 11 Blue IQ projects, The Innovation Hub, in its strategic role as a catalyst to help spur the growth of the hi-tech economy in Gauteng is participating in a number of the working groups of the ICT cluster study.
Why clusters?
Clusters create networks of strongly interdependent firms and specialised suppliers, knowledge producing agents (education institutions, research bodies, engineering companies), bridging institutions (brokers, consultants) and customers, and are linked together in a value-adding production chain. A cluster is useful because it is based upon regional proximity as well as a propensity to collaborate. This collaboration often occurs in areas that may be too expensive or too difficult for single firms to access on their own. Examples of this include international marketing and ICT research and development expenditure.
Clusters focus on linkages and interdependence between network participants when delivering products or services and creating innovations. Compared to the sectoral approach of linking strategic groups of similar firms with similar network positions, clustering offers a new approach to the economy, in line with modern trends of increased interaction and interdependency.
Clusters develop more cohesion, which enhances economic and technological development. All over the world, clusters have demonstrated that interaction between key players in business, industry, tertiary education and government R&D around specific projects result in greater profitability and improved business development. Excellent examples are the Finnish, Canadian, Victorian (Australia) and Israeli ICT clusters.
In South Africa, the creation of 'satellite' ICT clusters will help with the development of ICT applications and capabilities. The main ICT sector clusters will assist the satellite clusters. Six core ICT areas, where South Africa currently enjoys competitive advantage, or could become a global player in future, have been identified and will be used in the ICT cluster development process nationally.
"Strong leadership and active championship for cluster development in Gauteng is needed to counteract some scepticism about clusters in the Province", says Dr Neville Comins, CEO of The Innovation Hub and chairman of the championship-working group of the ICT cluster study. The working group is setting up mechanisms to canvas opinion on the needs of the ICT community to determine how a better understanding of these could help create stronger support for cluster development in Gauteng. This will be done with the assistance of existing associations, societies and constituencies in the Province.
Martin Yuill and Tsietsi Maleho of The Innovation Hub are also involved in ICT Cluster Study working groups, namely those four championship and innovation respectively.
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