industrial districts structure and chances for innovation: an empirical experience

1

Institute of Innovation and Knowledge Management

Daniel Gabaldón-EstevanDaniel Gabaldón-EstevanDaniel Gabaldón-EstevanDaniel Gabaldón-Estevan

Industrial Districts’ Structureand Chances for Innovation:

An Empirical Experience

Industrial Districts’ Structureand Chances for Innovation:

An Empirical Experience

Ignacio Fernández-de-LucioIgnacio Fernández-de-LucioIgnacio Fernández-de-LucioIgnacio Fernández-de-Lucio

Enrique Tortajada-EsparzaEnrique Tortajada-EsparzaEnrique Tortajada-EsparzaEnrique Tortajada-Esparza

2


Global Trends

3


Production of the Main Producers

35,57%

11,03%

10,26%

8,6%

3,9%

2,74%

2,69%

25,2%

China

Spain

Italy

Brazil

Indonesia

Turkey

Mexico

Other

2002 Total Production: 5.904 millions of S.M.

(ASCER 2003)

4


Consumption of the Main Producers

32,25%

6,03%

3,45%

8,04%2,03%

43,96%

China

Spain

Italy

Brazil

Indonesia

Turkey

Mexico

Other

2002 Total Consumption: 5.426 millions of S.M.

1,66%

2,6%

(ASCER 2003)

5


7,22%

25,7%

31,62%

5,2%

3,61%

5,2%

2,38%

19,06%

China

Spain

Italy

Brazil

Indonesia

Turkey

Mexico

Other

2002 Total Exports: 1.385 millions of S.M.

Exports of the Main Producers

(ASCER 2003)

6


Research Purpose

7


Purpose

How does the structure in a given Industrial District influence its innovative capacity?

Case study of the two most important ceramic tile industrial districts in Europe:

Sassuolo (Italy) & Castellon (Spain)

8


Theoretical framework

We follow Nelson’s (Nelson, 1993) primary typology of enterprises attending the characterisation of their technical change process:

Type A enterprises are producers of the commodityType B enterprises, namely providers of technology and advanced services

B1 complex systems producersB2 chemical products producers

9


Hypotheses

H1 innovation in a given industrial district is strongly dependent on the structure of the district in terms of the kind of enterprises that compose it.

H2 the innovative capacity of a district depends on the strength of the relations that the type B enterprises in that district have with other type B enterprises in other geographically close districts.

10


Methodology

Semi-structured interviews were maintained with representatives of the ceramic industrial districts of both countries including:– Managers from either ceramic,

electromechanical or glaze companies; – Representatives of employers and

workers associations; – Representatives of public institutions

specialized in technology or trade; – Responsible of research institutions

directly responsible for R&D for the industry;

– Academics whose work had intensively been focussed on the issue.

11


Elements in the Tile Production Process

12


Main elements in the value chain

Tile Production

Distribution & Consumption

Machinery & Equipments

Glaze & Colour

Raw Material Extraction

Design

13


Production typology in 2002

Italy Spain

Porcelanic tile

329.379

54,4%

55.335 8,5%

Enamel

453.502

74,9%

608.034

93,4%

Not Enamel

151.975

25,1%

42.966 6,6%

Wall tile

122.306

20,2%

240.870

37,0%

Floor tile

438.171

72,4%

410.130

63,0%

Total

605.477

651.000

(ASCER 2003)

14


Main elements in the value chain

Tile Production

Distribution & Consumption

Machinery & Equipments

Glaze & Colour

Raw Material Extraction

Design

15


Firms and employment in 2003

Italy Spain

Firms 315 294

Employees 30.264 25.200

Employees/Firm

96,1 85,7

(ASCER and ASSOPIASTRELLE )

16


The Sectoral Innovation System

17


Sectoral Innovation System

Legal & Institutional framework

Productive environment

Scientific environment

Technological and advanced services providers’ environment

(Adapted from Fernandez-de-Lucio et al. 1996 )

18


Institutional Environment

CASTELLON

The associative level is fragmented (ASCER, ANFFECC, ASEBEC, ALICER, ANDIMAC, AFPE and ATC) and although ASCER is the most important actor, it is not as predominant as its Italian counterparts Assopiastrelle.

Relevance of Cevisama and QUALICER as international events.

There are no direct policies towards supporting the sector although a good institutional disposition is observed.

SASSUOLO

The associative level is concentrated mainly around Assopiastrelle and ACIMAC.

Leader position of Cersaie and Tecnargilla.

There are no direct policies towards supporting the sector and the institutional disposition is weaker.

19


Scientific Environment

CASTELLON

Important role of the Jaume I University (UJI) training Chemist and Chemist Engineers. Deficient commercial and management training. Inadequate Industrial Engineering training.

Research is developed by the ICV (Ceramic and Glass Institute), the ITC (Technological Institute of Ceramics) and the UJI (Jaume I University).

SASSUOLO

The Modena and Reggio Emilia University only recently offer degrees on Chemistry and Ceramic Engineering, being more experienced on Business Administration and on Industrial Engineering training.

Less research is done in the Italian scientific environment, and it is carried by the CCB (Ceramic Centre of Bolonia).

20


Technological and Advanced Services Providers’ Environment

CASTELLON

Technological innovation is driven by the glaze sub sector and assisted by the ITC (Technological Institute of Ceramics).

Central role of the ITC on education and on process innovations.

Education on chemistry and cooperation from the ATC (Ceramic Technicians Association) is remarkable.

SASSUOLO

Technological innovation is driven and supported by the capital goods sub sector and design studios.

The role of the CCB (Ceramic Centre of Bolonia) although being important is not as central as its Spanish counterpart.

Excellence on design, business administration and commercialization.

21


Productive Environment

CASTELLON

Small and Medium Enterprises flexible and dinamic.

Low specialisation, most companies undertake all product typologies.

Relative vertical integration within companies.

Family founded firms, decisions are still adopted by the owner or main shareholder.

Small inter-firm collaboration on R&D projects. Subcontracting is considerable.

Weakness on the high market segment positioning.

SASSUOLO

Bigger ceramic holdings less dynamic than their Spanish counterparts.

Higher product specialisation.

Weak vertical integration within companies.

Decisions are adopted by shareholders on steering committees adopting a more management like approach.

Stronger tile firms implication on the Sectorial Innovation System articulation.

Leadership on main markets.

22


Environmental Interactions

CASTELLON

Information flows between the UJI, the ITC, the glaze companies, and the ceramic companies, and is reinforced by the mobility of and relationship between graduates.

The internationalization of the Spanish district with the Italian one is trough the relationship between the Spanish ceramists and tne Italian capital goods providers.

Predominant role of the institutional actors.

SASSUOLO

Dense network of actors invigorated by the capital goods companies..

The internationalization of the Italian district with the Spanish one is trough the relation of the Itañian ceramist with the Spanish glaze providers.

Predominant role of the business associations.

23


Innovation within the district

CASTELLON

Few relevant innovations both of product and process, more frequent in design and carried out by glaze firms.

Too much dependent on capital goods providers and glaze firms.

Lower innovative tension than their Italians counterparts.

SASSUOLO

Frequent product and process innovations driven by their leading position in capital goods.

Try not to be excessively dependent on providers.

Continuous search on new tile uses.

24


Relations between agents of different districts in Emilia-Romagna

(Istituto per la

Promozione Industriale

2002 )

25


Conclusions

1) similar level of competition within the districts of both countries but a much weaker cooperation in the Spanish one.

2) scarcity of technology and advanced services providers in the Spanish district relegates it to a follower role in the process of innovation adoption.

3) presence of cross-sector technology enterprises in the Italian district, raises the innovative tension because of the technology diffusion across districts, and it is favoured by the mobility of qualified workers.

26


INGENIO (CSIC-UPV)Camino de Vera s/n46022 ValenciaSPAIN

www.ingenio.upv.es

Turin 18/05/2005

Thank you for your attentionThank you for your attention

industrial districts structure and chances for innovation: an empirical experience

Technology