Abstract
The introduction of Japan's New Production Systems for forestry has raised the profile of a systems approach to strengthening forestry supply chain competitiveness. Such an approach has been practiced in Scotland via its Forestry Industries Cluster, bringing together government agencies and forestry businesses along the supply chain. Since the Cluster's formation, increasing timber availability has been matched by private investment in expanded processing capacity and biomass, so that currently Scotland produces 〜7mil.m^3 of timber annually of which over 80% is processed or used in Scotland. The authors have reviewed the Cluster's activities and carried out a field survey in 2008 involving interviews with participating organisations, supplemented by a questionnaire. We examine factors underlying current performance, and evaluate the hypothesis that the cluster organisational model has helped the industry's growth and competitiveness. The paper concludes by considering similarities and differences between Scottish experience and Japan.