Management of industrial clusters: tutorial

88 Pages·0.979 MB·Russian

by  Avilova

Copyright ООО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
The Ministry of Education and Science of the Russian Federation
Kazan National Research Technological University

V. V. Avilova, N. A. Lamberova

MANAGEMENT OF INDUSTRIAL
CLUSTERS

Tutorial

Kazan
KNRTU Press
2017
Copyright ООО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
UDC 658.562.012.07:665.6
BBK 30.607:65.9(2)304.13

Published by the decision of the Editorial Review Board
of the Kazan National Research Technological University

Reviewers:
Dr. Ekon. Sciences, prof A. Sh. Khasanova
Dr. Ekon. Sciences, prof. A. I. Romanova

Avilova V. V.
Management of industrial clusters: tutorial / V. V. Avilova, N. A. Lam-
berova; The Ministry of Education and Science of the Russian Federation,
Kazan National Research Technological University. – Kazan : KNRTU
Press, 2017. – 88 p.

ISBN 978-5-7882-2365-0

In the tutorial examines the concept of competition, discusses the mecha-
nisms of management and functioning of clusters as one of the effective methods to
achieve competitiveness. The experience of creation of industrial clusters in Russia
and abroad. In the petrochemical industry, the process of clustering define the strat-
egy of development of the industry. The emphasis is on the analysis of the TRANS-
Kama innovation cluster, which determines the development strategy of the petro-
chemical industry of the Republic of Tatarstan.
The manual is intended for masters on directions 38.04.02 "Management",
38.04.01 "Economy", 27.04.07 "High technologies and economy of innovations",
18.04.01 "Chemical technology".
Prepared at the department of economics.

UDC 658.562.012.07:665.6
BBK 30.607:65.9(2)304.13

ISBN 978-5-7882-2365-0 © Avilova V. V., Lamberova N. A., 2017
© Kazan National Research Technological
University, 2017
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CONTENT

Introduction .................................................................................................. 4
Chapter 1. The concept of competition and the main types of market
structures ....................................................................................................... 5
Chapter 2. The concept of competition for porter ...................................... 20
Chapter 3. The cluster concept of M. Porter. The change
in the structure of competitive forces in the global economy ..................... 39
Chapter 4. Mapping the concepts of cluster science parks,
technology parks and industrial district ...................................................... 48
Chapter 5. cluster Model and their key features (Italian, Japanese,
North American, Indian, Soviet, and Finnish models) ............................... 54
Chapter 6. Features the Italian model and their application
in the economy of the Russian Federation .................................................. 63
Chapter 7. Methods of evaluating the effectiveness of clusters.................. 66
Chapter 8. Characteristics of industry clusters RT ..................................... 75
Chapter 9. Use of cluster technology in the establishment of
Nizhnekamsk industrial district and the TRANS-Kama innovative
cluster ......................................................................................................... 79
Bibliography ............................................................................................... 87

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Introduction

The most important task of economic agents involved in the pro-
duction and sale of goods is to achieve competitiveness in both domestic
and international markets. One of the sources of competitiveness at the
macroeconomic level is the coordination of enterprises operating within the
same production chain without losing mutual competitive pressure, which is
a necessary incentive for improving the products and business methods of
companies.
One or more firms, achieving competitiveness in the global market,
extend their influence to the immediate environment: suppliers, consumers
and competitors. In turn, the success of the environment has a positive im-
pact on the further growth of competitiveness of the company. As a result, a
"cluster" is formed - a community of firms closely related industries, mutu-
ally contributing to the growth of each other's competitiveness. For the en-
tire economy of the state clusters play the role of points of growth of the
domestic market and the base of international expansion.
This manual discusses in detail the concept of competition and the
mechanism of its impact on the strategy of firms. The ways of achieving the
competitiveness of enterprises and the possibility of coordinating their ac-
tions are studied. The essence, structure and effect of clusters are revealed
both by international examples and by the example of the Russian Federa-
tion. The applicability of the cluster approach to the economy of Tatarstan
is shown on the example of Petrochemical cluster.
This manual contains several theoretical chapters, equipped with
both control questions and practical tasks, as well as several practical chap-
ters, equipped with practical tasks.
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Chapter 1. The concept of competition and types of market structures

Under the competition economists understand competition market
entities for better conditions and business results. A firm's competitiveness
is its ability to cope with competitive pressure due to those or other compet-
itive advantages.
The purpose of creating economic clusters is to increase the com-
petitiveness of companies within the cluster. So, before moving on to the
clusters directly, you should understand what competition is.
Usually in Economics there are two basic types of competition by
their intensity: perfect and imperfect. Perfect competition is a kind of sim-
plification, and is used to develop the methodology for the analysis of other
market structures. Imperfect competition on the market the following mar-
ket structures: monopoly, oligopoly and monopolistic competition.
Each of them has characteristics of each specific structure. Monop-
oly on the market, usually the large size. Oligopoly on the market by sever-
al firms, each of which is large enough to affect market prices. Monopolis-
tic competition is a market situation when each of the firms has no signifi-
cant impact on the market, but has some market power that gives it positive
profit. Let us consider each of these market structures separately.

Perfect competition
Under perfect competition firms, regardless of their absolute size,
do not have market power in the market of the final goods or on the market
of production factors. Ie they are unable to affect either the market price of
procurement that is used by them in production or on the price they sell the
product. These firms take prices as a given, and can only take one decision
– to stay in the market or leave it. In this case, "to remain on the market"
means to produce that amount of goods which maximizes the profit of the
company.
Due to the fact that in a competitive market, all prices can be con-
sidered as given, the marginal productivity of any resource in monetary
terms will have the same dynamics change of that marginal productivity in
physical terms. Resource will find use in the production until its marginal
productivity in terms of money will not lower his prices:

MRP1 ≥ R1 (1)

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The rule of profit maximization in competitive markets implies that
the marginal products of all factors of production in value terms is equal to
their prices, or that each resource is used up until its marginal product in
money terms will not be equal to its price:

MRPi = PI. (2)

Breakeven – this is the condition of the company, in which neither
profits nor losses. The condition of break-even: TR = TC.
Put on the x-axis the number of products, and on the ordinate the
cumulative revenues and costs (fig. 1.1). Profit is maximized when the gap
between TR and TC is greatest (segment AB). Points C and D are points of
a critical volume of production. Before point C and after point D total costs
exceed total income, such production is unprofitable. It is in the interval
from point K to point N the firm makes a profit by maximizing its in the
release, equal to M.

Fig. 1.1. The Production company and achieving max profit

At this point, the slopes of the derivatives of the marginal revenue
and marginal cost are equal (MR = MC). Modern economic theory argues
that profit maximization or cost minimization is achieved when marginal
revenue equals marginal cost (MR = MC).

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Note that
1) if MC > MR, it is necessary to reduce the volume of production;
2) if MC < MR, increase production volume;
3) if MC = MR, the issue of optimal.
Based on the condition of TR = TC,
PQ = FC + AVC*Q,
PQ – AVC*Q = FC,
Q (P – AVC) = FC,
Q = FC/ (P – AVC).

This is the formula of break-even (from the point of view of an ac-
countant).

Q = (FC + NPF) / (P – AVC) (3)

Fig. 1.2. Costs and profit of the company in the short term

In figure 1.2 shows the intersection of the marginal revenue curve
and marginal cost. Points K and M are points of a critical volume of pro-
duction. Total revenue is equal to the area of the rectangle 0АCN. Total
cost is equal to the area of the rectangle 0BDN. The maximum profit is the
area of the rectangle ABDC.
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In terms of short-term equilibrium, it is possible to distinguish 4
types of firms:
1. The firm at which average costs equal the price (ATS = P).
2. The firm, which manages to cover just the average variable cost
(AVC = P. In the case of price increases, she will be able to cover not only
the current (average variable), but all costs (average of total), i.e. to obtain a
normal profit.
3. In the case of reduction of prices, the firm ceases to be competi-
tive, because it cannot even cover operating costs (AVC > P) and will be
forced to leave the industry.
4. The firm at which average total costs less than the price (ATS <
R) is called the firm with the profit.

The main features of perfect competition:
1. The presence of a large number of firms, many buyers and
sellers. The sales volume of one firm accounts for a minor share of the total
sales in the industry. Actions of one firm have no effect on the market price.
2. The sellers adapt to the current pricing and act as cooperately.
market is set the same for all the parties to the transaction price. If someone
tries to sell its product at a price above the equilibrium, buyers will go to
other sellers. And sell at a lower price firm will not be because she could
easily sell at a higher equilibrium. Absent price discrimination.
3. The homogeneity of goods and services, i.e. the production of
standard products. The product of one firm is an absolute substitute for the
other firm. So there is no reason to non-price competition, i.e. competition
on the basis of differences in the quality of the product, advertising.
4. Observed mobility of all resources, which includes the freedom
of entry into industry and exit from it. Firms which only begin to produce,
you can do it on equal terms with existing firms, that is, they pay for re-
sources the same price as other firms. There are no obstacles (technological,
legal, financial, etc.) that could prevent the emergence of new firms.
5. Free access to information about the market, prices, costs, etc.
All buyers are aware of the characteristics of the goods. All the sellers have
equal information about the production technology.
The demand curve for the products of individual firms is always
horizontal (completely elastic). The firm maximizes its profits by choosing
a production quantity, where MR = MC = P. This means that if firm a little
bit increase the price, it will lose all demand for their product (because oth-
er companies now sell the same product cheaper). But for the whole indus-
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try it is not: if all firms simultaneously will raise the price, though the de-
mand will decrease, but will not become zero (fig. 1.3).
In figure 1.3 the point of intersection of the marginal cost curve (MC)
with the demand line (line MR = P) determines the volume of supply of the
competitive firm, which at this price provides the maximum profit.

Fig. 1.3. The demand Curve for the products of individual firms (a) and the
curve of market demand in the industry (b)

Fig. 1.4. The volume of supply of competitive firm
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P1 > ATC. Point Q1 will generate the offer of the company, at this
point achieves the maximum profit (the firm receives economic profit).
P2 = ATC. In this case, the form reaches the break-even point Q2,
the firm will form its proposal.
P3 > AVC. In this case, the company will receive damages form the
proposal will be at the point Q3. The firm will continue to operate with
losses, because it is more profitable than closing.
P4 < AVC. In this case, the firm will work, as covered by its aver-
age fixed costs. If the price to fall below P4, the firm will stop production
and exit the industry.
The best result for the company in the short term is economic profit.
The supply curve of the firm seeking to maximize profits under conditions
of perfect competition coincides with the increasing part of marginal cost
curve that lies above the minimum average variable cost.
With the release of Q1 firm receives economic profit. If price fall to
level P2, quantity Q2 will minimize losses in the short term. P2 = AVC,
which is a condition of minimization of losses.
For a long period of obtaining economic profit is impossible, since
in the conditions of free entry and exit of the industry's high profits attract-
ed into the industry by other firms, and unprofitable firms leave the indus-
try.

Fig. 1.5. The balance of competitive firms in the short term
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