DTI pushes ‘cluster approach’ to spur SME growth

The Department of Trade and Industry and the Japan International Cooperation Agency are pushing for the adoption of the cluster-based industrial development strategy to spur the growth of small- and medium-scale enterprises.

Trade Undersecretary Merly M. Cruz said in a statement that the “way forward” to ensuring the success of SMEs in both domestic and international markets is to implement cluster-based strategies via partnerships with the government, industries and institutions.

This move will enhance linkages between industry clusters and their global partners; development of technical and managerial skills; enhancement of technological and innovation capabilities and efforts; support for entrepreneurship, SMEs and networking; and improvement connectivity such as road and telecommunication infrastructure and other logistics support.

Cruz said that industry clusters are groups of competing, collaborating and interdependent businesses within a value chain.

Industry clusters cover interconnected businesses, suppliers, and associated institutions creating direct and indirect synergies among them, while value chains describe how goods are produced and get into the hands of end-users or consumers, she added.

“It is clear that much has already been done to develop the industry clusters and much still remains to be accomplished. The DTI with partners like JICA and the cooperating agencies and organization will continue to explore industry cluster development as a potent tool in bringing in inclusive growth,” Cruz said.