Economics Essay Paper on International Trade: The Melbourne Biotech Cluster

International Trade: The Melbourne Biotech Cluster

                                                                         Part 1:

1. A clear analysis of the graphs indicates that they are not connected. The different graphs deal with different interstate organizations and collaborations. This makes each graph unique and unable to relate with each other.

2. I cannot be able to see any visible giant component from the graph. For example, The first graph is that of the Melbourne biotechnology cluster. The theoretical properties of the graph include the circles, triangles, and squares. The circles represents the Melbourne based DBFs. The triangles presents the partnerships formed with other Melbourne based firms. An analysis of the graph does not indicate any giant component.

3. An example of vertex degree number is 33. The number has been repeated among the different graphs in the article. The vertex degree number means the number of collaborations formed by the different organizations.

4. The graphs have some form of triadic closure in which the different organizations operates. For example, figure 5 shows how the graphs used the different patterns and properties to form the appropriate networks in the biotechnology industry. The triadic closure concept has been used by Melbourne cluster to form appropriate collaboration for the success of the organization.

5.  The analysis of the Melbourne firms reveals different bridges formed by firms in Melbourne region with other firms outside the region For example, figure one shows the design of graph in two-dimensional spaces that represent the network data and the algorithms embedded in it. The spaces are aimed at reducing the distance between the different connected nodes in order to maximize the distance between the unconnected nodes. This illustrated the bridges formed between firms from the outer region of Melbourne region.

Part 2

  In order to promote the collaboration of Melbourne city with other regions, I would recommend two relevant approaches. First, I would recommend the commercialization of the biotechnology industry across the different regions. The agreements between the partners include commercialization programs such as licensing agreements and technical assistance to be provided.  A look at the Warsaw cluster indicates that it is better placed in the industry to integrate the different scientific and technological developments.  Warsaw comprises of different companies including Biomet, Zimmer and Schwartz among others.  The companies have been helping in the conduction of biologics and tissue engineering. The presence of vast skills and technology in Warsaw cluster has helped to promote specialty fermentation rather than specialty machining. Some experts feel that the traditional orthopedic devices would be incorporated into the different biologics to promote performance. The clusters formed included Warsaw faces various challenges such as the challenge of attracting and retaining talented employees and geographical problems among others.

             Secondly, I would recommend increased investment in competitive research and development programs. In the modern society, there is a need to improve the competitiveness of the research and developed based industries. This improves the research work performed in the industry both science and technology.  The employees must have advanced knowledge for the creation of new ideas.  PhD level research laboratories should be developed in order to promote the competition for knowledge. This encourages for the connections between the different companies forming the clusters. Since, the clusters can be easily funded for large research projects.  For instance, an aerospace company started General Atomics (GA) in the late 1953.  The company was able to attract skilled researchers and employees. This helped to drive high technology in the region. Other institutes include “The Scripps Research Institute.” Therefore, the interorganisational clusters are relevant for the success of   biotechnology industry across the world.