Transforming Relationships to Increase Competitiveness and Focus on End Markets
Undersecretary Merly M. Cruz DTI-Regional Operations Dev’t Group 12 March 2012
OUTLINE OF PRESENTATION I Introduction (Concept, Legal Basis)
II Value Chain as a Tool III Industrial Governance Framework
IV National Industry Cluster Capacity Enhancement Project (NICCEP)
V Sample Application (Coco Coir & Peat)
Industry Clusters are groups of competing, collaborating and interdependent businesses within a value chain. It has increasingly been recognized as an effective approach in industrial development and promotion of micro, small and medium enterprises as it encourages competitiveness. The clustering process necessitates the operation of upstream (raw material suppliers, production inputs) and downstream (logistics, value-adding, packaging and marketing) economic activities to support the whole value-chain.
CONCEPT
VALUE CHAIN
- The value-creating flow of a good from RM, production, commercialization, & ultimately delivery to end-users or consumers.
INDUSTRY CLUSTER
- A geographic concentration of interconnected businesses, suppliers, & associated institutions creating direct & indirect synergies among them.
DEFINITION
In the Philippine Development Plan for 2011-2016, Inclusive growth and poverty reduction goal Increase productivity and efficiency of the industry and services Contribute more to economic growth and employment. The strategy towards clusters should have coordinated interventions to provide an integrated response to the needs of the industry clusters. The PDP recommends maximizing public-private partnerships (PPP) in the identification of solutions for the challenges and problems of the industry clusters.
Alignment to PDP 2011-16
Value Chain Framework
Basic Functions (chain links)
Provision of specific inputs Production Transformation Trade Final Sale
Links: his Team on June 27, 2011 at DTI-RODG Makati.