Participation in clusters has proven to be very beneficial for firms. In empirical studies it has been found that a 10% increase in the level of agglomeration (approximately equal to the size of the cluster) is associated with an average productivity improvement of 1.25%. Other studies show that firms that are part of clusters on average benefit from an increase of 14% in value added growth; 17% in profitability growth; and 2% in wages per employee. These numbers should convince most firms to join in an appropriate cluster. The Geelong fibre cluster is especially important as it operates in an area that is critical to our future low resource footprint economy since it adds value to raw material [everything from cellulose to petroleum] by providing additional functionality for which higher profit margins can be achieved whilst reducing the long term environmental impact – all in all a recipe for success in both today’s and tomorrow’s world.
Professor Göran Roos