1. Project Overview

Clusters have been acknowledged as a potentially effective mechanism for enhancing regional competitive advantage. In examining how clusters may benefit Victorian businesses working together, Ammirato et al. (2003, p. 6-7) identify various policy statements that note how clusters can make a substantial contribution to Victoria's economy. They:

Because clusters build upon and augment local strengths and capabilities and integrate non-metropolitan areas into metropolitan and overseas markets they can succeed in both metropolitan and regional areas (Ammirato et al. 2003). The inclusion of a cluster strategy within Victoria's broader economic development framework has been designed to position the State as a leading innovation economy which effectively supports the development of skills and the creation and commercialisation of ideas and knowledge (Regional Development Victoria Office of Science and Technology 2004).

Through its $2.9 million Regional Innovation Clusters Program support is being provided for the development of approaches which identify actual and potential clusters and promote their formation, operation and expansion. The City of Ballarat has been successful in securing funding to conduct the first comprehensive study of the Ballarat Information and Communications (ICT) cluster. This study will assist the City of Ballarat and other key stakeholders in identifying the economic role that and ICT cluster may have on the Ballarat region. It will also assist in identifying how regional ICT activities can be underpinned with appropriate support.

The City of Ballarat has experienced considerable growth during the past decade and is recognised as one of Australia's most vibrant regional centres. Strong industry development has been experienced in sectors including health, manufacturing and retail. The ICT Sector has emerged as a distinctive industry sector, but also as an integrated sector across industry, business, services and community (City of Ballarat 2003).

The tables below summarises some of the key events and developments which have shaped the development of the local ICT industry. These factors have been drawn from descriptive information in the Ballarat Economic Development Strategy 2003 (City of Ballarat 2003), from the Ballarat Technology Park website www.ballarattechnologypark.com and from Annual Reports for the University of for the period between 2002 - 2005 (see www.ballarat.edu.au/vco/planning).

The City of Ballarat has been heavily involved in the development and nurturing of the ITC sector in Ballarat for a number of years. During 2003 clustering in specific sectors was identified as an important economic development strategy. The Ballarat ICT sector was identified as reaching a critical mass, with enterprise support emerging for a movement from a loose network to a more formalised cluster. The establishment of an ICT Cluster would achieve a more strategic position; drive innovation and competitiveness; further business development and attraction; and assist in positioning Ballarat as a Centre of Excellence in ICT.

Specific economic development strategies related to ICT have been identified (City of Ballarat 2003). These include:

In a 2003 discussion paper on clusters in Victoria, Ballarat was highlighted as a regional centre with a potential information technology cluster (Ammirato et al. 2003). The City of Ballarat subsequently identified that the development of the Ballarat ICT Cluster was seen as a key priority for the region (Cited in City of Ballarat 2004). When the Regional Innovation Clusters Program (Regional Development Victoria Office of Science and Technology 2004) was launched, the City of Ballarat set aside funding to support the establishment of an ICT cluster on the basis that matching funds were likely to be attracted through the new cluster program.

The Ballarat ICT Cluster Steering Committee was established during 2004 with it membership drawn from the ICT sector and from government, health, education, manufacturing and industry representative groups. The Committee would assist the City of Ballarat in preparing its application for funding through the Regional Innovation Clusters Program and demonstrate that the cluster priorities were owned and driven by local businesses, industries and organisations. The issues and priorities identified by the committee are listed below (Angeloni 2004):

As part of the Regional Innovation Clusters Program application process the City of Ballarat was required to indicate whether an experience Cluster facilitator or consultant had been selected. A request for expressions of Interest was therefore prepared and published (City of Ballarat 2004). Responses were required to be submitted by 15 October 2004. The University of Ballarat was among the organisations that provided a written response. Members of the proposed Research Team were subsequently invited to make a presentation to the Ballarat ICT Cluster Steering Committee Interview Panel. On 2 November 2005 the City of Ballarat confirmed that the University of Ballarat had been selected as the Ballarat ICT Cluster Consultant. Project implementation would not, however commence until government funding for the Ballarat ICT Cluster had been approved and announced.