Baltic Automotive Components Cluster
About this good practice
In Lithuania, a lot of attention is paid to the development of clusters. A cluster-friendly environment is being created, international relations are being developed, and it is encouraged to join international clusters. Innovation networks for small and medium-sized enterprises create an environment favourable to innovative. As a result, the Baltic Automotive Components Cluster (BACC) was established.
BACC links Lithuanian, German and Swedish companies with different competencies, from metal processing and forging, plastic injection moulding, tool design and production, cable harness, electronics up to developing and manufacturing drive systems and charging stations for e-mobility.
BACC presents these advantages and benefits for their clients: extensive experience working with the automotive and engineering companies in Western, Northern and Eastern Europe; international experience participating in international exhibitions, business missions and conferences; common projects with the aim to reduce production and overhead costs; internal cooperation among BACC members – strengthening relations, development of the service/product value chain; partnership with vocation schools and universities to help the industry prepare targeted professionals; production of small and middle-sized automotive parts and components; timely updated reports.
Expert opinion
BACC is an exemplary case for developing an environment to support local and regional businesses and to help countries develop economically. In this case, automotive related public and private stakeholders combine their advantages and expertise for the benefit of cluster.
BACC's partnership with vocational education schools and universities is particularly interesting. Collaboration between educational institutions and the workforce creates a win-win situation for businesses and students alike – on the one hand, students receive relevant training and the opportunity for employment increases and for the companies, they have a pool of well-trained workers who are aware of their specific industry needs.
While clustering within industries is quite common and a proven method to foster innovation, collaboration, and export, the BACC stands out with its international nature by linking companies from three countries. Such cross-border clustering can be especially beneficial for smaller countries seeking to fulfil the demand of larger markets. This practice has high replication value in other corners of Europe.
This good practice should be viewed together with the Lithuanian Automotive Export Association (LAuGEA): https://www.interregeurope.eu/policylearning/good-practices/item/5098/lithuanian-automotive-export-association-laugea/
Resources needed
Cluster managed to use state financial support under the thematic priority No. 3 “Promoting the competitiveness of small and medium-sized enterprises”. The used financial instrument was “Verslo klasteris LT”, while the provided funding was €319 868.57 in the form of non-repayable grants.
Evidence of success
Currently, cluster consists of 20 auto parts and components manufacturers, service providers and research institutions. Members of this cluster employ around 3100 employees while the annual turnover is around 260 million euro. In addition, members also export around 90 percent of their production, mostly to Sweden, Germany and Russia. With the help of the cluster, members supply their products to world-class OEM and TIER1 manufacturers, such as Volvo, Daimler, BMW, VW, Audi, Scania and others.
Potential for learning or transfer
This good practice could be interesting for other regions due to the fact, that business clusters can be supported through state funding schemes. Funded activities under the used measure “Verslo klasteris LT” are based on the synergy of clusters and are dedicated to finding new markets (consulting services, including expert services, membership in international networks - platforms -, development of marketing tools for joining international networks, etc.).
Further information
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Good practice owner
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