5. Governance Arrangements

WSITC was established as a strategic initiative to drive innovation, entrepreneurship, internationalisation and business growth in Western Sydney's growing ICT industry with the following aims:

WSITC is driven by the Office of Western Sydney established by the NSW Government in 1998 as a key strategic regional agency to deliver initiatives to advance the interests of Western Sydney. WSITC has a cluster manager. It has set up strategic partnerships and alliances with national IT industry and other industry associations; federal and state government departments; educational institutions and leading IT companies. WSITC has generated significant sponsorship from both the private sector and government. Sponsors of WSITC cluster programs and services include Ernst and Young, Garner, and the NSW Department of Information Technology, Austrade and AusIndustry, among others. WSITC organised a monthly program including networking and forum functions around specific themes such as 'emerging technologies and trends', 'growth strategies for SMEs' and 'export markets and business opportunities.

Governance structure: An innovate State government office that works closely with the private sector, three tiers of government, the universities and communities in Western Sydney. The Greater Western Sydney Economic Development Board played a key role in lobbying for and marketing the region.

This ICT cluster is similarly driven by a government agency, Advantage West Midlands (AWM) is committed to promoting the successful development of the ICT business community with the region. AWM has initiated a program whereby a combination of private and public sector organisations are collaborating to assist AWM in delivering this vision.

The central body of the ICT cluster empowered by AWM to oversee and direct the delivery of the region's ICT strategy is the Cluster Opportunities Group (COG). This group is industry led, having a majority of private sector members supported by several key public sector partners. The Executive is comprised of a Cluster Manager (from AWM), a Regional ICT Co-ordinator (CW Chamber), a Regional Skills Manager (Government Agency), a Cluster Innovation Manager (WM Higher Education Association); and ICT Projects Co-ordinator.

The COG is resourced by an Executive Team led by an AWM Cluster Manager together with a representative from three other key partner organisations in the West Midlands. As the champion of the Region's IT industry, the COG welcome interaction from both business and the public sector. The COG commissions projects and regularly publishes projects and performance information on the cluster website. The COG also organises an annual conference where partners and companies come together. Members are encouraged to get involved by suggesting new projects, joining an existing project, attending events, partnering on bids, using local suppliers, and by sharing knowledge and data. Current projects include establishment of an integrated regional IT association; building a state of the art IT complex providing advice, consultancy and training to SMEs in high growths sectors; providing awareness for ICT SMEs of latest technology and trends; establish, support and promote a network of photonics companies, universities and research bodies; assist development of, increase awareness of and become a regional/national focus for Open Source developers and users.

The West Midlands ICT Cluster has devised a framework with the following aims:

As part of the strategy adopted by the COG a number of Task Groups have been established to focus on specific cluster priorities or initiatives. In some instances these are extensions of the Executive Team's duties such as marketing, communications and data intelligence. The remaining Task Groups focus on specific issues impacting on the cluster itself with each Task Group reviewed annually. In all instances, the separation of Task Group from the mainstream duties of the Executive, results in drawing in additional knowledge and personnel to contribute their significant experience and expertise. The Task Groups reflect the areas of priority identified by the private sector members and include Data and Intelligence; Export; Innovation (including research and development); Marketing and Communications; Public Sector Procurement; and Workforce Development.

Governance structure: A regional development government office that works closely with the private sector, assisting the private sector to lead the cluster.

CREDC has one of the most developed and effective cluster-based economic development programmes in Australia. The agency currently provides support for 15 membership-based industry clusters (all non-ICT). CREDC's cluster program is credited with becoming a key driver of new innovations and information exchange within the region.

CREDC is responsible for promoting business, investment and trade in the northernmost part of Queensland. A Far North Queensland Regional Economic Development Strategy released in 1996 identified the development of industry clusters as an important way forward and in 1997 CREDC became the lead agency for managing their development. In the beginning CREDC ran a number of meetings to which representatives of organisations that shared similar markets, suppliers and networks were invited. Once a core of committed participants was obtained CREDC encouraged the formalisation of cluster groups into member-based associations. This was partly a necessity for obtaining participant financial contributions as well as to encourage industry ownership of activity including the development of cluster strategic plans.

CREDC's specific aim is to build a regional economy that:

There are currently 15 cluster groups in existence. These include an ecofish cluster (largest with approx. 70 members), superyacht group (about 45 organisations), engineering network, aviation group, infotech group, tropical foods group and several others. In addition three emerging clusters are at varying stages of development: cane farming, creative industries and tropical knowledge and expertise.

Each cluster operates autonomously while remaining under the umbrella structure of CREDC. CREDC employs facilitators allocated to support individual clusters and provides further assistance in terms of guidance on cluster governance, planning and reporting. Each cluster provides a strategic plan and annual report. Strengthening of cross-cluster collaboration is expected to play an increasing role. Potential linkages have, for example, been identified between the super yachts and aviation clusters. International linkages are also being explored for further development.

Governance structure: CREDC is an incorporated public company. Business or individuals joining CREDC pay a modest fee and become shareholders of the company with the allocation of one share of equal value to business or person.

Cluster members are automatically CREDC members. There are approximately 450 shareholders who elect an eight-person board of directors. The CREDC staff comprise a Chief Executive Officer, cluster support and administration staff. CREDC's cluster support receives a $250,000 annual grant from the Queensland State Government. Specific projects may attract other government funding where the activity is aligned to policy programmes. Additional resources come from membership fees levied by individual groups. These can vary from $500 to $10,000 a year depending partly on the financial resources of the organisations involved.

Developing an income from a levy on the return to collective ventures brokered by the cluster has been explored. Several clusters are said to be in a position to gather additional income in this way, but so far it has not occurred.

From the two workshops held on 22 November 2005 and subsequent consultation meetings with the Steering Committee it has become apparent that for the Ballarat ICT cluster to move forward from being a latent cluster to becoming an active cluster, there is a need to facilitate interaction between ICT firms (especially between smaller and larger firms), between ICT firms and local institutions, as well as between ICT firms and external opportunities, including access to larger tender opportunities.From the workshops and subsequent consultatations with the Ballarat ICT steering committee, it has also become apparent that a stage-based approach, e.g., setting a range of short-term objectives into motion to dovetail into longer term objectives, would be a suitable strategic direction for the Ballarat ICT cluster.

Since there is already a local ICT development body in place - cBallarat - that is ideally placed to lead further Ballarat ICT cluster developments, it is our recommendation that in the short term the Ballarat ICT cluster build on existing infrastructure as a transitional governance structure until the cluster is mature enough to set up a more independent governance structure. This model builds on existing linkages between Council, cBallarat, the University of Ballarat and industry; takes advantage of established structures, infrastructure and resources; links in with established networks and communication systems; and avoids potential for duplication of resources and efforts. Both short term and long term structures are considered further below.