Dr. Karim Chalita Rodríguez President of the Tourism and Convention Committee of Tijuana, Baja California. Founding President of the Baja California Health Services Cluster A.C. (Baja Health Cluster)

At the beginning of 2000, the city of Tijuana, through the Tijuana Development Council (CDT), motivated by the global trend of seeking economic development models, undertook the task of creating what we know as clusters. This gave rise to several economic sectors that organized themselves to create this type of model. Over the years, various economic sectors have attempted to adopt this development model; many have attempted it, but few have succeeded. Currently, Tijuana has developed economic potential where clusters are part of this important process, giving rise to a growing economy. Companies, institutions, and organizations that share a common interest are vital to fostering competitiveness and innovation in our region, acting as true engines of growth and dynamism in the local environment.

CHARACTERISTICS OF A CLUSTER ACCORDING TO MICHAEL PORTER

Prominent competitiveness expert Michael Porter defines clusters as groups of companies and organizations concentrated in a specific geographic location, establishing interdependent and synergistic relationships. According to Porter, a cluster must possess several key characteristics that distinguish it:

1. Interconnection: Companies that are part of a cluster must be linked to each other through commercial, supply, and collaborative relationships, creating a dynamic ecosystem that fosters the exchange of ideas and resources.

2. Competition and cooperationClusters foster an environment where companies not only compete with each other but also find opportunities to collaborate in areas of common interest, generating synergies that often drive innovation.

3. InnovationA cluster should act as a catalyst for innovation, facilitating the transfer of knowledge and technology among its members, allowing them to maintain a competitive advantage in the market.

4. Access to resources:Businesses must have access to vital local resources, including skilled human talent, adequate financing, and strategic suppliers, which are essential to operating efficiently and effectively.

ARE THEY REALLY PROMOTERS OF A CITY’S ECONOMIC DEVELOPMENT?

Undoubtedly, clusters have established themselves as drivers of economic development in cities. By fostering the union of companies dedicated to the same economic sector, they pool efforts and resources to compete in a global market. Furthermore, they generate employment and attract investment, thus contributing to the economic growth of the city and, consequently, improving the quality of life of its inhabitants.

CLUSTER VS. CIVIL ASSOCIATIONS

It is essential to establish a clear distinction between clusters and civil associations.

The primary objective of a cluster is the economic development of the region. All its actions are geared toward attracting wealth. However, it also seeks to improve quality processes, consolidate prices, and, above all, work with educational institutions to recruit professionals who are aligned with the region’s needs. Participation in public policy is fundamental to the development of an economic sector within the region, as it establishes the regulatory framework, providing the basis for the rules of the game that organizations must follow to operate. When a public policy favors the sector, this will be reflected in greater global competitiveness. However, overregulation or public policies that are merely coercive, without incentives for companies, or those that favor personal interests, will result in a less competitive sector and inhibit economic growth.

On the other hand, associations generally seek internal growth and will also seek support from authorities, but from the perspective of the group itself, rather than from the perspective of integration with the production chain. Depending on the sector, some will seek academic excellence, others tariff benefits, and others social benefits, to name a few. These generally compete with each other and, above all, with members outside their group. Unlike clusters, which, while also experiencing competition among their members, join forces to seek a globalized market.

Advantages And Disadvantages Of Forming A Cluster

Advantages:

» Synergies: Companies can leverage collaboration and knowledge sharing, which significantly enhances their innovative and competitive capacity.

» Access to talentThe concentration of companies in a cluster attracts highly qualified professionals seeking new job opportunities, thus strengthening the region’s human capital.

» Innovation: The physical proximity between companies facilitates the generation of new ideas, products, and services, boosting business creativity and adapting to market demands.

» Integration of the entire value chain.

Disadvantages:

» Monopoly riskIf a cluster becomes too dominant, it can restrict competition, negatively impacting small and medium-sized businesses that cannot compete on a level playing field.

» Dependency: Firms can become dependent on cluster conditions, which could limit their ability to adapt to external changes and new market trends.

» Inequalities: Not all companies within the cluster can benefit equally, which can generate tensions and inequalities in the development of the different actors involved.

WHO FORMS A CLUSTER?

The main actors that should participate in a cluster are:

Companies: Private sector participation is the cornerstone of a cluster. Cluster formation must be driven by and governed by those who develop and create the economic activity. Participating here are small to medium-sized enterprises operating in a specific sector and seeking greater competitiveness and efficiency.

Educational institutions: Universities and research centers that provide knowledge, training, and fresh talent to the business ecosystem, contributing to the development of skills needed in the labor market.

Government: State and local entities that facilitate the development and regulation of the cluster, supporting initiatives and promoting policies conducive to economic growth.

Suppliers and distributors: Companies that offer the necessary inputs and services for the efficient operation of the cluster’s businesses, ensuring operational continuity.

Challenges In Forming A Cluster

Clusters face various challenges in their formation and development, such as:

Coordinate interests: Aligning the goals and expectations of the different participating companies and entities can be a complicated and delicate process.

Financing: Securing the necessary resources to start and maintain a cluster often represents a significant challenge, as it requires a considerable initial investment and a sustainable financial plan. In developed countries, these resources initially come from the public sector.

Sustainability: Ensuring that the cluster is viable over the long term and able to adapt to changes in the economic and social environment is essential to its success and continued growth.

CLUSTER STRUCTURE: IS THERE A UNIVERSAL STRUCTURE?

There is no universal structure for clusters, as each one is unique and must adapt to the characteristics of the sector and the region in which it operates. The important thing is not the name they carry, as there are associations that develop as a cluster and, on the other hand, clusters that do not carry out the activities or follow the objectives of an economic development promoter throughout the value chain. It is crucial that, during the creation of the cluster, its members clearly define what a cluster is and what its purpose is. Most often, the difficulty lies in seeking the good of the sector and not just that of a particular company.

Conclusion

Tijuana is a city where clustering has been a generator of wealth for the region. Tijuana is home to a variety of important clusters, including:

1 Medical Devices Cluster

2 Baja California Health Services Cluster (Baja Health Cluster).

3 Information Technology Cluster.

4 Aerospace Cluster.

5 Automotive Cluster.

6 Other recently created clusters.

Clusters represent a powerful tool for Tijuana’s economic development. Their ability to foster collaboration and innovation among businesses can transform the local economy and position the city as a leader in diverse industries. This dynamic not only contributes to the well-being of its population but also promotes sustainable and resilient growth in the region.

THE IMPORTANCE OF CLUSTERS IN THE ECONOMIC DEVELOPMENT OF THE CITY OF TIJUANA