THE ROLE OF CLUSTERS IN THE NEWINDUSTRIAL REVOLUTIONSOME THOUGHTS ON BUSINESS TRANSFORMATION AND JOB RE-GENERATIONAlberto ...
Index• Another industrial revolution: why now and whatdoes it mean?• How clusters matter in the new industrial revolution•...
ANOTHER INDUSTRIAL REVOLUTION: WHY NOW AND WHATDOES IT MEAN?4The Economist, February 2009The Economist, August 2010The Eco...
ANOTHER INDUSTRIAL REVOLUTION: WHY NOW AND WHATDOES IT MEAN?5
ANOTHER INDUSTRIAL REVOLUTION: WHY NOW AND WHATDOES IT MEAN?Firsts and second industrial revolutions6Source: The Economist...
ANOTHER INDUSTRIAL REVOLUTION: WHY NOW AND WHATDOES IT MEANS?Clusters in the first industrial revolution7SheffieldcutleryL...
8Source: Joint Venture Silicon Valley Network, Internet Cluster Analysis 2000ANOTHER INDUSTRIAL REVOLUTION: WHY NOW AND WH...
HOW CLUSTERS MATTER IN THE NEW INDUSTRIALREVOLUTIONThe new industrial revolution: main features• Green revolution• End of ...
10HOW CLUSTERS MATTER IN THE NEW INDUSTRIAL REVOLUTIONSource: BSG, 2011AT A GLANCE•China wages increase at 15-20% per year...
HOW CLUSTERS MATTER IN THE NEW INDUSTRIALREVOLUTIONThe new industrial revolution: main features• Green revolution• End of ...
12HOW CLUSTERS MATTER IN THE NEW INDUSTRIAL REVOLUTIONSource: The Economist, April, 21st, 2012Source: Peterson, 2010Source...
13Clusters generate endogenouscompetitiveness advantages by- improving companies’ operationalefficiency- fostering innovat...
Implications for companies andclusters•Re-think products and way ofproducing -> from mass production tomass-customization•...
NEW AGENDAS FOR COMPANIES, CLUSTERS AND POLICYMAKERSImplications for companies andclusters•Re-think products and way ofpro...
16HOW CLUSTERS MATTER IN THE NEW INDUSTRIAL REVOLUTIONSource: The Economist, April, 14th, 2012“Yet Germany’s cutting edge ...
17The Economist, April, 21st, 2012Where China scoresLi & Fung, a Hong Kong firm that helps companiesfind suppliers in Asia...
CONCLUSIONS AND OPEN QUESTIONSA couple of simple conclusions:•Cluster will still play a key role in the new industrial tra...
19CONCLUSIONS AND OPEN QUESTIONS
CONCLUSIONS AND OPEN QUESTIONS
CONCLUSIONS AND OPEN QUESTIONSA couple of simple conclusions:•Cluster will still play a key role in the new industrial tra...
For more information and request for slides:Apezzi@gencat.catApezzi@tci-network.org22
TCI2012 The role of clusters in the new industrial revolution
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TCI2012 The role of clusters in the new industrial revolution

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Alberto Pezzi on the role of clusters in the new industrial revolution - some thoughts on business transformation and job re-generation, presented at the 15th TCI Global Conference, Basque Country 2012

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  • First big feature of first IR Change in productivity: labor productivity x150 times by 1800 and x300 by 1825
  • The first industrial revolution took place in specialized clusters The transmission of technology and tacit knowledge was unthinkable without clusters Technology improvement were incremental and based of copy and imitation (no tech transfer centers) Arkwright’s spinning machine (1769) Crompton’s mule (1779) …
  • Eco-industry job growth 2000-2008 2 M. to 3,4 CAGR 6,98% Low energy building KETs forecast 2008-2015 154% growth
  • Eco-industry job growth 2000-2008 2 M. to 3,4 CAGR 6,98% Low energy building KETs forecast 2008-2015 154% growth
  • ‘ Social Capital definition.. the ability of people to work together for common purposes in groups and organizations‘, Fukuyama 1995 The cluster added-value in innovation process (*): better perception of new buyers’ need early diffusion of new technologies strong rivalry among competitors quicker knowledge circulation (“cafeteria effect”) stronger support from external agents (government, universities, etc.) “ .. the productivity and prosperity of a location rest not on the industries in which its firms compete, but how they compete ” (M.E. Porter, On Competition, 1998) “ Clusters and, more generally, regional agglomerations are often the core of innovative development ” (Aho Report on Creating an Innovative Europe, 2006) “ It is not the ingredients, but the recipe” (P. Romer, A. Saxenian, ..)
  • Clusters are at the core of Smart Specialization since they represent the natural evolution of the productive fabric of the territory Clusters features in term of innovation, new business creation and evolution represent a powerful tool for understanding, designing and implementing SSS Catalan cluster policy has evolved significantly in the last years to adapt cluster initiatives scope to new markets criteria and to capture social and economic trends and challenges Modern-designed cluster initiatives allow to work at cross-sectorial level and to coordinate the work of different agents
  • TCI2012 The role of clusters in the new industrial revolution

    1. 1. THE ROLE OF CLUSTERS IN THE NEWINDUSTRIAL REVOLUTIONSOME THOUGHTS ON BUSINESS TRANSFORMATION AND JOB RE-GENERATIONAlberto PezziHead of Competitive StrategyACC10 / Directorate General for IndustryGovernment of CataloniaPast President and member of the Board of Directors TCI NetworkSan Sebastian, 19thOctober 2012
    2. 2. Index• Another industrial revolution: why now and whatdoes it mean?• How clusters matter in the new industrial revolution• New agendas for companies, clusters and policymakers• Conclusions and open questions
    3. 3. ANOTHER INDUSTRIAL REVOLUTION: WHY NOW AND WHATDOES IT MEAN?4The Economist, February 2009The Economist, August 2010The Economist, August 2006The Economist, September 2011The Economist, April 2012The Economist, October 2003
    4. 4. ANOTHER INDUSTRIAL REVOLUTION: WHY NOW AND WHATDOES IT MEAN?5
    5. 5. ANOTHER INDUSTRIAL REVOLUTION: WHY NOW AND WHATDOES IT MEAN?Firsts and second industrial revolutions6Source: The Economist, Dec. 23rd, 1999 from A. Maddison, IMF.
    6. 6. ANOTHER INDUSTRIAL REVOLUTION: WHY NOW AND WHATDOES IT MEANS?Clusters in the first industrial revolution7SheffieldcutleryLancashirecotton textilesNorth StaffordshirepotteryYorkshirewoollen textiles
    7. 7. 8Source: Joint Venture Silicon Valley Network, Internet Cluster Analysis 2000ANOTHER INDUSTRIAL REVOLUTION: WHY NOW AND WHATDOES IT MEAN?Clusters in the internet revolution
    8. 8. HOW CLUSTERS MATTER IN THE NEW INDUSTRIALREVOLUTIONThe new industrial revolution: main features• Green revolution• End of the oil era -> electromobility• Mobile technology• Use of new technologies and materials -> manufacturing in going digital• Fragmentation and globalization of value chains -> the “new industry”• Factory re-shape and localization9
    9. 9. 10HOW CLUSTERS MATTER IN THE NEW INDUSTRIAL REVOLUTIONSource: BSG, 2011AT A GLANCE•China wages increase at 15-20% per year•China labor cost advantage Vs USA to pass from55% in 2011 to 39% in 2015•Progressive reduction of manufacturingexpenditures on overall product costsReassess offshoring strategy
    10. 10. HOW CLUSTERS MATTER IN THE NEW INDUSTRIALREVOLUTIONThe new industrial revolution: main features• Green revolution• End of the oil era -> electromobility• Mobile technology• Use of new technologies and materials -> manufacturing in going digital• Fragmentation and globalization of value chains -> the “new industry”• Factory re-shape and localization• Dramatic changes in skills and jobs -> jobless growth• Growing importance of tacit knowledge and immaterial assets(creativity, entrepreneurship, design, etc.)• …• Clusters will still play a key role in the economy11
    11. 11. 12HOW CLUSTERS MATTER IN THE NEW INDUSTRIAL REVOLUTIONSource: The Economist, April, 21st, 2012Source: Peterson, 2010Source: BSG, 2011
    12. 12. 13Clusters generate endogenouscompetitiveness advantages by- improving companies’ operationalefficiency- fostering innovation and tacitknowledge diffusion- stimulating creation of new companiesespecially through spin-offs- accelerating social capital formationSource: adapted from M.E: Porter, 1998HOW CLUSTERS MATTER IN THE NEW INDUSTRIALREVOLUTIONClusters key features
    13. 13. Implications for companies andclusters•Re-think products and way ofproducing -> from mass production tomass-customization•Changes in the geography of supplychain and in manufacturing location•Identify Key Competitive Advantagesand cluster core specialization•Put strategy at the center of thecompany and the clusterNEW AGENDAS FOR COMPANIES, CLUSTERS AND POLICYMAKERS14
    14. 14. NEW AGENDAS FOR COMPANIES, CLUSTERS AND POLICYMAKERSImplications for companies andclusters•Re-think products and way ofproducing -> from mass production tomass-customization•Changes in the geography of supplychain and in manufacturing location•Identify Key Competitive Advantagesand cluster core specialization•Put strategy at the center of thecompany and the clusterSome new items on policy makers’agendas•Focus on growing and sustainableindustries•Focus on clusters’ strategic andendogenous assets (tacit knowledge,specific skills, etc.) -> place-basedcompetition•Re-think the “perimeter” of clusterdevelopment initiatives•Use clusters to understand andadapt to business model changes•Articulate regional smartspecialization strategy around smartdefined clusters 15
    15. 15. 16HOW CLUSTERS MATTER IN THE NEW INDUSTRIAL REVOLUTIONSource: The Economist, April, 14th, 2012“Yet Germany’s cutting edge has anancient blade.The country’s Mittelstand clusters offirms, which often specialise in nicheareas of manufacturing, developed inthe late 19th century”.
    16. 16. 17The Economist, April, 21st, 2012Where China scoresLi & Fung, a Hong Kong firm that helps companiesfind suppliers in Asia, says in a recent researchreport that clusters like Shenzhen are “an integralPart of China’s international competence inmanufacturing”. It counts more than 100 industrialclusters in China—including one, in Zhuji inZhejiang province, that just makes socks. It consistsof more than 3,000 small and medium-sizedenterprises in the production chain for socks.As long as China’s clusters maintain their edge,these jobs, whether producing iPads or socks,will not go back to America or Europe.HOW CLUSTERS MATTER IN THE NEW INDUSTRIALREVOLUTIONSource: Update on Industrial Clusters in cina (2010)Li & Fung research centre
    17. 17. CONCLUSIONS AND OPEN QUESTIONSA couple of simple conclusions:•Cluster will still play a key role in the new industrial transformation•Strategy is more and more the key ingredient for global competition in theXXI century18
    18. 18. 19CONCLUSIONS AND OPEN QUESTIONS
    19. 19. CONCLUSIONS AND OPEN QUESTIONS
    20. 20. CONCLUSIONS AND OPEN QUESTIONSA couple of simple conclusions:•Cluster will still play a key role in the new industrial transformation•Strategy is more and more the key ingredient for global competition in theXXI century.. and a lot of open questions:•What role should Government and policy makers play in this scenario?•How does the clusters of the future look likes?•How to conciliate the paradox of localization?•How to solve the question for job?•….21
    21. 21. For more information and request for slides:Apezzi@gencat.catApezzi@tci-network.org22
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