The Cluster of Advanced Materials Technologies (CAMT, https://www.camt.org.ua/) was created in June 2023 and registered in July. Similar clusters specializing in advanced materials and additive technologies do not exist in Ukraine. In 5 months, the organization gained quick recognition in the Ukrainian Cluster Alliance and among its foreign partners, particularly clusters of this sector from Poland and Germany. Why did such a quick start of the new cluster take place? The executive directorate of UCA tried to answer these questions, and key people — CEO of CAMT Andriy Strelchenko, CEO of UCA — Oleksandr Yurchak, and other members of the UCA community gave their comments.
The start and development of the cluster in 2023
The cluster idea came from Andriy Strelchenko, CEO of Prostir3D, after meeting Oleksandr Yurchak on May 31 at the Industrial Forum in Kyiv. Passing through a series of stands, Oleksandr then stopped at the Prostir3D company stand, and, word for word, it became clear that there are specific common interests in developing new materials and additive technologies. Having clarified that Andriy is from Lviv, Oleksandr invited him to the Lviv conference on June 5-7. This event made a strong impression on Andriy, but most importantly, he provided valuable contacts for the Polish and German clusters, whose managers were at this conference. Andrzej Chulak (CEO of the Kraków Composite Materials Cluster) and Martin Kretchman (Project Manager of Composite-united from Germany) were very open to conversation. They immediately suggested several specific events for the fall.
Since then, Andriy and his closest business partners began to delve deeply into “What are clusters?”. In addition to meetings with the Ukrainian Cluster Alliance, during June, Andriy, and his colleagues had numerous exchanges with other clusters of the UCA, firstly, IAM (Engineering-Automation-Mechanical Engineering) close to them. The questions of this internal, one might say, “research” was typical for young clusters: why clusters, what does it give, how to organize, who are the beneficiaries, how to involve market participants, what should be the form of registration, etc.
Andriy is not one of those who takes a long time with a decision — at the beginning of July, he registered the cluster as a public union, a non-profit organization. UCA provided a lawyer with experience in this case, and in less than a month, the Public Union “Cluster of Advanced Materials Technologies” appeared. Participation in the Industry 5.0 conference on July 14 in Kyiv was critical for Andriy’s colleagues. Here, the UCA in fact already promoted the newly created cluster in relevant discussions related to defense technologies and the development of machine-building infrastructure.
In August-September, intensive exchanges took place within the Lviv ecosystem. Again, thanks to the networking activities of the Ukrainian Medical Association and partners (first of all, the Lviv Oblast Regional Administrative Court and the Lviv City Council), the CAMT cluster gained good connections with the Lviv Medical Business Cluster and the Lviv Startup School. The partners began considering new opportunities for cooperation and development of the region’s innovative ecosystem.
Active foreign activities begin in September. Representatives of the cluster visited three foreign exhibitions — an exhibition of additive technologies in the aviation industry in Toulouse, an exhibition of composite materials in Kraków, and one of mechanical engineering in Brno. All these manifestations promoted the cluster and its members, and all events were organized in cooperation with the UCA.
The CAMT cluster quickly made a website and launched the work of three committees: marketing, technologies, and international activities. Every week, the committees report on the overall progress in their activity area.
I am impressed. This year at UCA, we have about seven new cluster initiatives and are trying to help each one. I have also observed the growth processes of young clusters in Ukraine for the past five years. But how quickly the CAMT cluster started surprised even me. There are no similar growth rates or activities among more mature clusters that entered the market earlier. Of course, there are also many challenges in the cluster, which are also generated by this rapid growth. We remain in close contact and will resolve them together.
OLEKSANDR YURCHAK COMMENTS ON THE SPEED OF CLUSTER DEVELOPMENT
The first joint project of the cluster: the training center for specialists
The training center in additive technologies and composite materials was launched in Lviv at the beginning of November. The project was implemented independently – at the joint cost of the participants. Four companies invested the most in it – one provided an office and premises, another offered computers and workplaces, the third offered software and relevant CAD / CAM / CAE training modules, and the fourth provided a measuring system, Prostir3D – 3D printers. The total cost of the investment exceeds 150,000 euros. Training is planned to be structured so that each company will train on its type of equipment.
Qualified personnel is problem No. 1 in Ukraine in all sectors, but it is critical in industrial high-tech industries. As early as 2021, finding personnel on our market was possible. Now, it is almost impossible. Based on this, we set tasks in the cluster. I note that this task is beyond the power of an individual market participant – that is why we used the mechanism of cluster cooperation to solve it. That is, we solve a common problem of cluster participants together. Today, I am thrilled that we launched our training center.
ANDRIY STRELCHENKO
When the editors of the UCA asked Andriy about the potential of additive technology markets, he noted that we could discuss the development of these markets only after the personnel problem was solved. There are many potential segments and niches – the ones in prosthetics look very interesting. These are primarily titanium implants, carbon-carbon, pink materials, multicolored prostheses, etc. Of course, the drone market needs no comments. Andriy says there is already a huge demand, but it is difficult to scale it.
“In addition to personnel problems, there needs to be more investment. If an investor appeared who would invest 1-2 million euros in the technology of composite materials power elements of the glider, we could talk about the transition to serial production, the diversification of final products, less dependence on China, etc..”
Current situation and key challenges
So, the CAMT cluster of 9 participants (all SMEs) is considering new challenges. Of course, we are talking about a rapid increase in the number of members, and now the participants are considering how to structure the management of these processes properly. There are already willing, potential new members, but how to reconcile this with the interests of existing participants, many of whom are competitors – a consensus has yet to be reached.
Andriy says that these processes are evolutionary in cluster members. From the paradigms of the “closed club” with its motto “Texas belongs to Texans” 🙂, the realization gradually comes that it is impossible to solve super-complex market challenges with a few participants. And this is also not compatible with the interests of international partners. It is immediately felt in communication with Polish and German colleagues, whose clusters will include about 100 participants in the Polish cluster and 350 in the German cluster.
During these five months, I have considerably changed my views on the development of the cluster,” says Andriy. “At first, I thought it was enough to unite 10-15 solid businesses, and then we would cope with all the challenges ourselves, quickly take off and be completely autonomous. But it is challenging, if not impossible. There should be more of us, and this issue is already on our agenda. Ideas about cooperation are also changing.
In particular, cooperation with other clusters of the Ukrainian Academy of Sciences greatly helps us. UCA — sets many directions. The first is knowledge and exchange of experience. The second is the methodology. The third is connections and recommendations, including for international partners. It gave a quick start and orientation in the first steps. Without UCA, we would not have been able to launch so quickly.
Rapid growth also means a transition to regular and systematic management. Recruiting a full-time manager will soon be one of the main tasks.
The cluster considers two values- international activity and fundraising- as the main advantages for new participants. The cluster has already submitted one application and plans two more in November.
Cluster management is also considering launching PR activities to increase industrial markets’ awareness of the possibilities of new materials and additive technologies. Activities for lobbying the interests of manufacturers in this segment at the state level are also considered.
Advanced (or improved) materials are new materials that did not exist before and that humanity intentionally created to achieve specific goals. The scientific achievements of the 20th century and the technological advances of the past three decades brought us across the conceptual threshold. They made advanced industrial materials a vital component of the high-tech economy.
The use of advanced materials in military and medical technology is particularly interesting for Ukraine and Lviv. The transfer of technologies for manufacturing individual prostheses of lost limbs using 3D printing to the Unbroken Ukraine rehabilitation center looks promising. Moreover, an important task is the modernization to industrial scale of the existing production of parts for aircraft based on prepregs — advanced materials that allow changing the technology and increasing production volumes tenfold.
That is why the newly created cluster of advanced materials technologies can become the competence center, allowing medtech and military tech enterprises to leap and reach a qualitatively new technological level.
DEPUTY OF THE M. Lviv CITY COUNCIL OLEKSA WOZNIAK IS AN ACTIVE PARTICIPANT IN THE CITY’S HI-TECH AND CLUSTER COMMUNITIES, AS WELL AS THE WHOLE UCA, THIS IS HOW HE COMMENTS ON THE EMERGENCE OF THE NEW CLUSTER.
Key factors of success of the CAMT cluster
So, what are the main lessons of this initial period, and what can other young clusters and cluster initiatives of the Ukrainian Cluster Alliance learn from it? In this case, we prioritize the key success factors as follows.
- The entrepreneurial energy of business partners is factor #1 in this case. Thanks to Andriy Strelchenko’s assertiveness and power, as well as the support of his initiative by other business partners, it was possible to launch all the necessary consolidation processes quickly and immediately proceed to specific actions.
- UCA support should be considered factor #2. The executive directorate of the UCA acted as a mentor and curator, providing methodological recommendations (such as the “10-step” instruction) and services in the form of valuable connections, legal assistance, contacts, and information, as well as the initial promotion of the cluster. At the same time, close contact between the first persons — O. Yurchak of the Executive Directorate of the UCA and A. Strelchenko of the CAMT cluster — is necessary.
- Support of foreign partners is in third place. The Polish and German clusters of composite materials are in constant contact with CAMT. They generate new proposals, and joint projects are already planned for 2024. It is also necessary to note such a factor as rapid integration into the local ecosystem. The Lviv innovation ecosystem is one of the most developed in Ukraine. Although the consolidation of industrialists here is still a long way off, no one should underestimate its potential and power. The CAMT cluster quickly found and established valuable contacts with several new partners, including from the authorities and several UCA clusters.
The future of mechanical engineering is based on new materials and technologies,” states Andriy Strelchenko. Members of his cluster, who visited three international exhibitions in the autumn of 2023, clearly diagnosed this trend. “The future of the Ukrainian economy lies in developed clusters. They should cover all industries and regions,” Oleksandr Yurchak adds.
UCA invites young clusters and cluster initiatives to join the alliance. For questions about joining UCA, contact info@clusters.org.ua. For issues of cooperation and joining the CAMT cluster, contact service@camt.org.ua.