Flanders' FOOD, Flanders, Belgium

The Flanders region is shaped by five dominant industrial ecosystems, which all encompass players from the smallest start-ups to the largest companies, from academia to research, service providers to suppliers:

1. Agri-Food
2. Renewable Energy
3. Mobility, Transport & Automotive
4. Health Tech
5. Energy Intensive Industries

The Flemish government has addressed the new opportunities and challenges facing Flanders in its long-term strategy Vision 2050. Within the framework of health, digitalisation, sustainability and climate change, seven transition priorities have been identified: 1. Circular Economy Transition, 2. Smart Living, 3. Lifelong Learning Transition, 4. Caring and Living Together Transition, 5. Mobility Transition, 6. Energy Transition, and 7. Industry 4.0.

In addition, a resilience plan for economic reconstruction exists for recovery in post-COVID times. In particular, investments are planned to overcome the weaknesses in the health system, in the digital transformation, in more efficient government processes and a lower-carbon economy.

Since 2016, the Flemish government has supported innovation clusters to unite the private, public and academic sectors as long-term partners for innovation. This triple helix collaboration consists of the Flemish Government's Innovation and Entrepreneurship Agency (VLAIO), the four strategic research centres of the universities and seven 'spearhead clusters'. The spearhead clusters are related to the main strategic fields and ecosystems of the region and focus on the long-term developments of their industry. All seven spearhead clusters were not initiated by VLAIO, but emerged from buttom-up industry initiatives.

The seven spearhead clusters are:

• Maritime Activities (Blue Cluster)
• Sustainable Chemistry and Plastics (Catalisti)
• Agri-Food (Flanders’ FOOD)
• Healthcare Inovation (MEDVIA)
• Energy (Flux50)
• (Sustainable) Materials (SIM)
• Logistics (VIL)

VLAIO supports the cluster organisations financially, and at the same time there is a strategic partnership between VLAIO and the clusters, as well as other partners from the innovation and entrepreneurship network. The clusters also act as advisors to the government due to their good insight into the figures and technologies of the respective industries. Especially in the early days of the COVID-19 pandemic, this relationship could be exploited for various ad-hoc initiatives (such as a quick supply of medical masks). Due to the occupation of a strategic domain, the spearhead clusters are obliged to develop a strategic agenda (roadmap). In order to do so, needs and developments in the industry are discussed together with companies, followed by a ranking of strategic challenges and assignment of projects. These projects are then linked together in the roadmap for a common goal. At the same time, such projects also have financial advantages, such as more long-term funding and the additional 'earmark budget' for projects from the three focus themes of digitalisation, health and sustainability of the Flemish government's Vision 2050.

Digital and green industrial transition and building up resilience are equally important objectives of the cluster initiative. In order to achieve these goals, the cluster management narrowed down its service portfolio to five targeted support activities:

1. Internationalisation Support: facilitating access to third countries markets through participation in relevant (European) partnerships and networks,

2. Access to finance: Scientific guidance and support for grant requests

3. Facilitation of collaboration between members (within the cluster)

4. Facilitation of external collaboration (beyond cluster) such as matchmaking

5. Support of Research, Development and Innovation.

Through the strategic character for the region in the agri-food sector and the related roadmap process, Flanders' FOOD actively co-designs the industrial transitions through the previously described roadmap-process. Flanders' FOOD sees it as its mission to ask questions about the future, even if these issues are not yet perceived as important by companies. In this way, they actively create demand, rather than simply acting in a demand-driven manner. The seven clusters are perceived as strategic partners by the regional development agency VLAIO. All spearhead clusters from the region are closely connected to each other and know the activities of the other spearheads. By presenting each other's roadmaps, interdisciplinary topics can also be identified and more cross-industry links can be established.

The close partnership between VLAIO and the clusters also ensures a good connection with the government. The clusters often act as advisors to the government, as they know the industry and its technologies well and have a good insight into numbers and capacities. This knowledge enables them to place issues on the government's agenda that might otherwise fall off the table. This was the case with Flanders' FOOD, for example, on the topic of protein switching or the connection between individual nutrition and societal health standards. At the same time, the relationship also enables a quick response to the government's needs (for example during the first Covid lockdown).

Further, the seven clusters support the necessary changes to achieve the goals of the Vision 2050. To this end, Flanders' FOOD seeks to get academia to work with industry by identifying and filling knowledge gaps, reaching out to the research and academic communities, and sharing information with businesses. In the complex field of knowledge institutes, federation and competing businesses, Flanders’ FOOD acts as a neutral player. The expertise in Research, Development and Innovation projects, the excellent connection to policymakers due to the partnership with VLAIO and the customer intimacy based on trust are irreplacable factors. In order to bring the entire industry along with the transition, it is important not only to follow trends, such as the protein change through plant-based food, but also to think along with more traditional sectors such as the meat industry. The cluster can help make their production greener and more digital, without the industries having to completely change their product.  

The spearhead clusters represent significant employment and value creation in Flanders. Between 2018 and 2019, the number of member companies increased by 22 percent. They represent more than 220,000 full-time equivalents and a value added of almost 28.5 million euros, representing 12% and 15% of the Flemish total respectively. The total labour productivity of the member companies expressed in value added per full-time equivalent is 128,000 euros per full-time equivalent, compared to the Flemish average of 103,000 euros.

Since 2005, Flanders' FOOD has been able to increase its number of members from 20 to 316.

Flanders' FOOD has initiated many projects in the priorities set by the government. The interest from the industry shows the importance of the topics of health, digitalisation, and sustainability and climate change. The cluster structures the projects within the developed roadmap and uses its large network to solve problems. One example is the strategic field of personalised foods and healthy diets. In discussions with industry representatives, Flanders' FOOD learned that companies see the topic as a major challenge that they cannot tackle on their own. By activating the network around Flanders' FOOD, various projects and test fields within the roadmap for the food industry could be initiated and the companies thus supported.

The Flanders Agency for Innovation and Entrepreneurship reports that Flanders' FOOD has initiated at least 153 projects in the last 15 years, involving a wide range of companies. They have not only made companies think long term, but also helped develop the mindset in the region towards collaboration. This applies to the cooperation of different actors and institutions as well as to cross-sectoral and international collaboration. Flanders' FOOD is also particularly active internationally compared to the other spearhead clusters. In 2020, Flanders' FOOD was involved in 87 regional and 150 international collaborations. For example, Flanders' FOOD coordinates the European smart specialisation platform Smart Sensors for Agri-Food. This is an international partnership focusing on digitalisation in the food industry, bringing together the agri-food, sensor and IT sectors. Flanders' FOOD uses the resulting network as an intermediary for its companies and at the same time is always informed about what is happening in the sector outside Belgium.

Another observation of the regional development agency is that companies are very satisfied with the services and support provided by the clusters. An evaluation from 2019 showed that industry representatives particularly appreciate the cross-sectoral connections and improved knowledge transfer with other companies and knowledge institutes. Another 2019 study by the Centre for Research & Development Monitoring (ECOOM) compared Flemish industry cluster members with non-members. The study shows that companies within the cluster programme collaborate more with other companies and have more structural collaborations with research institutions and companies from other sectors. The ECOOM study also found that member companies have a higher economic added value compared to the Flemish industry as a whole. However, the study cannot clearly clarify whether more productive companies are more likely to become members, or whether their membership actually has a positive effect on economic productivity.

Further Reading:

A study on cluster support in Flanders: final report section spearhead clusters (15th June 2020):  https://www.vlaio.be/nl/media/1829, Only available in Dutch

The agri-food industry is facing major challenges: Climate change and globalisation are increasing the already great pressure on raw materials and digitalisation. The classic value chain from the farm to the consumer with a central role for the food factory seems increasingly outdated in the face of global changes. The demands of consumers on the food industry are also constantly changing: individualised needs are much more in focus than they were a few years ago. In addition to a greater variety of different diets, the demand for staple foods is also changing, as shown by the protein shift and the associated increasing replacement of animal products with plant-based alternatives. The nutrition industry and its impact on physical well-being are under greater pressure, not least because of Europe’s ageing society. The high profile of nutrition issues in social media also poses an additional risk for many companies, which often seem overstrained  with communication here. The issues are overwhelming for individual companies, but also challenging for the entire industry in Belgium. Investing in research and innovation, as well as bridging borders between sectors and regions, is inevitable in order to overcome these challenges.

Flanders' FOOD has recognised the importance of acting in these fields and plays a leading role in bridging these borders. Among other things, Flanders' FOOD identified the need for a pilot-level infrastructure supported by researchers to bridge the gap between the needs of companies and the high scientific level from university research. This pilot equipment, including a test kitchen, is used for example in an interdisciplinary industrial research project at the interface between nutrition and care. In addition, projects were initiated to develop methods for individualising meals based on the nutritional needs of consumers, as well as a study on the influence of social media on food consumption behavior in Flanders. All these projects are aligned with the roadmap for the food industry. For the industry in Flanders, these activities have led to a strengthening of economic resilience through the creation of new cross-sectoral collaborations and industry-oriented research.