Following a program of research funded by the Regional Innovation Cluster Program in April 2005 a nascent Information and Communications Technology (ICT) Cluster was identified in Ballarat. Recommendations were put forward for a further program to be undertaken to upgrade and develop the Cluster, particularly in the context of greater networking and collaborative projects between Cluster participants.

The University of Ballarat was engaged by the City of Ballarat for the management and coordination of Stage 2 of the Ballarat ICT Cluster project to help foster further development of the Ballarat ICT industry. Specifically, the role of the Project Team was to establish effective communication channels with cluster members; foster cluster membership; increase the quantity and quality of inter-firm linkages and alliances; identify opportunities for collaboration; progressively build and communicate cluster data and intelligence; coordinate newsletters, networks, forums; manage and maintain the Ballarat ICT website, launch the ICT directory; and implement a cluster monitoring and evaluation process. As part of this the research team also worked with the Cluster to foster its identity – an area of significant importance in research studies.

Upon the start of the project, a Project Officer was appointed to assist in the aforementioned tasks. An engagement program was designed which included a series of individual firm visits, cluster panels and other events.

Interim results show that the database maintained by the Project Team has increased from 82 to 103 ICT firms. It contains expanded information on government, service and industry contacts with a total of 304 records; 41 firms are currently profiled in the Ballarat ICT Directory; a total of 57 stakeholders were visited; 18 meetings/events were organised and attended by a total of 360 cluster stakeholders with individuals often attending more than one event. The panel sessions and other events were very well attended with an average of 21 participants across all events.

The visits to firms have also proven to be useful. They helped to build or cement relationships with each firm and served to once again provide firms with insights into the objectives of the ICT Cluster.

The Cluster does, however, continue to be faced with some issues. In particular, the core of committed participants remains small and the Cluster still lacks critical mass. Firms tend to take a laissez-faire approach to participation in the Cluster and are still awaiting concrete outcomes for their businesses. This should not be surprising, a cluster is not only measured in terms of its collaborative activities; competitive benchmarking leading to an overall improvement in cluster competitiveness, is also an important feature of a mature cluster.

It is clear that there is a need for increased awareness and knowledge flows both between ICT firms as well as between ICT and non-ICT firms. There is a consistent call for a centralised point of access to the skills and capabilities residing within the Cluster. However, firms have been slow in creating comprehensive firm profiles and facilitation efforts will need to increase in this area. This can be managed by intervention but the best evidence of a successful cluster is when skilled labour and appropriate capital is increasingly attracted to Ballarat.

In the short to medium term, the Cluster will benefit from continued facilitation as an industry-driven governance structure is still to emerge. In the interim, there are several informal local leaders who provide social networking, vision and leadership for the Cluster and several of these are part of Ballarat ICT Ltd. Indeed, Multimedia Victoria has commented that the local champions in the private and public sector who will take on and lead new initiatives are a distinctive feature of the Ballarat ICT Cluster.

At present there is not the appropriate resourcing to take responsibility for the oversight of strategic leadership, consistent business development, and the fostering of collaboration and wider partnership opportunities between stakeholders. From an SME firm point of view, there is a continued expectation that a hands-on cluster facilitator is necessary to lead new partnerships and collaborative tendering. It may be useful to revisit how to get the best results from a cluster facilitator position. that enhances tripartite relations between government, university and industry.

Whilst the ICT cluster members indicate a need for further support the level of collaboration and joint projects has increased since the first cluster study. The cluster is still some way from being dynamic and self sustaining but the level of joint projects, collaboration and benchmarking is increasing. Where there is clearly a demand for support is in the area of marketing and financial advice. In addition the cluster members were concerned that skills shortages inhibited their growth.

Looking to the future, there continues to be strong level of confidence in Ballarat as a productive and innovative location. The Cluster is growing, levels of collaboration are developing and the rate of organic growth through spinouts is notable. The main institutions in Ballarat are helping sustain growth and support the momentum; Ballarat, among the regional centres in Victoria, has a real reputation for ‘action’. This has proved a significant attractor for a number of new initiatives involving various private, State and Federal bodies.

The Ballarat ICT Cluster can be further developed through high level networking events, the promotion of innovation and competitiveness in the Cluster and as a coordinating front for taking the Cluster to other regions and countries in the search for active collaborative partnerships. Again we emphasise that clustering is more than networking; it is the joint pursuit of collaboration and competition that leads to innovation, growth, exports and the attraction of new labour and capital to the region. Through continued fostering of relationships and knowledge transfer through a series of demonstration project sites and best practice examples in the region, the Ballarat ICT Cluster is in an excellent position to form associations within its own Cluster as well as with other clusters or exemplary producers or users of ICT, across Victoria and beyond.

Given this positive outlook, future ICT Cluster strategies can be designed to help advance current conditions through further development of resources and competencies of the Ballarat ICT Cluster. That will allow the Ballarat ICT Cluster to migrate to a more competitive, innovative and sustainable future.