Question of Timber Sector Clustering: Results and Experience of Northern Countries

Abstract

Cluster-based development of various economic sectors is associated with benefits, provided by participants' interaction and integration of different activities: ongoing, investment, innovation. Cooperation provides the total synergy effect, cost minimization, higher profitability of business processes. The paper presents findings of the research undertaken to study transformation of the northern countries' timber sector. The analysis of the northern countries' experience and economic growth programmes shows that their economic stability is based on rational use of natural resources, first and foremost on renewable forest resources, while the timber industry is a major taxpayer and budget contributor. Cluster development of the northern countries' timber sector with high investment provides for production stability and high valueadded timber exports. Results of the timber sector development in Sweden, Finland, Canada, where forests represent more than a half of the area, are given as arguments. Despite natural and geographical features, hindering the forest exploitation, Norway has programmes of the timber sector support and development as well. High results of the northern countries are mainly related to the cluster-based approach to the sector management, including the innovational timber cluster establishment. The cluster-based development of the northern countries' timber sector with high investment provides for production stability and high value-added timber export. The northern countries' success in the timber sector attracts the attention of Russian timber companies, which have actively been initiating clustering over the last five years. The development of timber sector clusters in Russia will secure their integration in the global transnational processes of timber product value creation. It will result in the innovation level for the Russian enterprises' engineering capability and facilities, access to modern management methods and competitive global markets

Forms of Interaction of Participants of Timber Industry Clusters in North-West Russia

“…Tools such as questioning, and interviewing were used for the research. Questioning was conducted at PAP-FOR exhibition and business forum (St. Petersburg), "Russian Forest" exhibition and forum (Vologda) [11][12][13]. Information was collected through the dissemination of standardized questionnaires with open and closed questions.…”

Changes in the Territorial Clusters of the Russian Timber Industry

“…Core cluster activities are generally focused on modernization and diversification of the industrial sector [1][2][3], establishment of new research and development competences, launch of innovational products and technologies and promotion in domestic and international markets [4][5][6]. Cluster formation in Russia follows the international clustering experience of developed countries, which demonstrated efficiency of networks in enhancing economic competitiveness of regions and countries in theory and practice [7][8][9]. In this regard, innovative territorial clusters are viewed as growth points, competitiveness poles for national economies, regions' development drivers.…”