How Does Structure Affect 
Industrial Districts Innovation? 
How Does Structure Affect 
Industrial Districts Innovation? 
1 
Institute of Innovation and Knowledge Management 
DDaanniieell GGaabbaallddóónn--EEsstteevvaann 
IIggnnaacciioo FFeerrnnáánnddeezz--ddee--LLuucciioo 
EEnnrriiqquuee TToorrttaajjaaddaa--EEssppaarrzzaa
2 
Research Purpose 
Institute of Innovation and Knowledge Management
3 
Institute of Innovation and Knowledge Management 
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)
4 
Institute of Innovation and Knowledge Management 
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 
commodity 
Type B enterprises, namely providers of 
technology and advanced services 
B1 complex systems producers 
B2 chemical products producers
5 
Institute of Innovation and Knowledge Management 
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.
6 
Institute of Innovation and Knowledge Management 
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.
7 
Institute of Innovation and Knowledge Management 
Elements in the 
Tile Production Process
8 
Institute of Innovation and Knowledge Management 
Main 
elements in 
the value 
chain
9 
The Sectoral Innovation System 
Institute of Innovation and Knowledge Management
10 
Institute of Innovation and Knowledge Management 
Sectoral Innovation System 
Legal & Institutional framework 
Productive environment 
Technological 
and advanced 
services 
providers’ 
environment 
Scientific environment 
(Adapted from Fernandez-de-Lucio et al. 1996 )
11 
Institute of Innovation and Knowledge Management 
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.
12 
Institute of Innovation and Knowledge Management 
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).
13 
Institute of Innovation and Knowledge Management 
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.
14 
Institute of Innovation and Knowledge Management 
Productive Environment 
CASTELLON 
Small and Medium Enterprises 
flexible and dynamic. 
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.
15 
Institute of Innovation and Knowledge Management 
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 the 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 Italian 
ceramist with the Spanish glaze 
providers. 
Predominant role of the business 
associations.
16 
Institute of Innovation and Knowledge Management 
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.
17 
Institute of Innovation and Knowledge Management 
Relations between agents of 
different districts in Emilia-Romagna 
(Istituto per la 
Promozione 
Industriale 
2002 )
18 
Institute of Innovation and Knowledge Management 
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.
TThhaannkk yyoouu ffoorr yyoouurr aatttteennttiioonn 
19 
Institute of Innovation and Knowledge Management 
INGENIO (CSIC-UPV) 
Camino de Vera s/n 
46022 Valencia 
SPAIN 
www.ingenio.upv.es 
Copenhagen 19/06/2007

How Does Structure Affect Industrial Districts Innovation?

  • 1.
    How Does StructureAffect Industrial Districts Innovation? How Does Structure Affect Industrial Districts Innovation? 1 Institute of Innovation and Knowledge Management DDaanniieell GGaabbaallddóónn--EEsstteevvaann IIggnnaacciioo FFeerrnnáánnddeezz--ddee--LLuucciioo EEnnrriiqquuee TToorrttaajjaaddaa--EEssppaarrzzaa
  • 2.
    2 Research Purpose Institute of Innovation and Knowledge Management
  • 3.
    3 Institute ofInnovation and Knowledge Management 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)
  • 4.
    4 Institute ofInnovation and Knowledge Management 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 commodity Type B enterprises, namely providers of technology and advanced services B1 complex systems producers B2 chemical products producers
  • 5.
    5 Institute ofInnovation and Knowledge Management 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.
  • 6.
    6 Institute ofInnovation and Knowledge Management 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.
  • 7.
    7 Institute ofInnovation and Knowledge Management Elements in the Tile Production Process
  • 8.
    8 Institute ofInnovation and Knowledge Management Main elements in the value chain
  • 9.
    9 The SectoralInnovation System Institute of Innovation and Knowledge Management
  • 10.
    10 Institute ofInnovation and Knowledge Management Sectoral Innovation System Legal & Institutional framework Productive environment Technological and advanced services providers’ environment Scientific environment (Adapted from Fernandez-de-Lucio et al. 1996 )
  • 11.
    11 Institute ofInnovation and Knowledge Management 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.
  • 12.
    12 Institute ofInnovation and Knowledge Management 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).
  • 13.
    13 Institute ofInnovation and Knowledge Management 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.
  • 14.
    14 Institute ofInnovation and Knowledge Management Productive Environment CASTELLON Small and Medium Enterprises flexible and dynamic. 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.
  • 15.
    15 Institute ofInnovation and Knowledge Management 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 the 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 Italian ceramist with the Spanish glaze providers. Predominant role of the business associations.
  • 16.
    16 Institute ofInnovation and Knowledge Management 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.
  • 17.
    17 Institute ofInnovation and Knowledge Management Relations between agents of different districts in Emilia-Romagna (Istituto per la Promozione Industriale 2002 )
  • 18.
    18 Institute ofInnovation and Knowledge Management 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.
  • 19.
    TThhaannkk yyoouu ffoorryyoouurr aatttteennttiioonn 19 Institute of Innovation and Knowledge Management INGENIO (CSIC-UPV) Camino de Vera s/n 46022 Valencia SPAIN www.ingenio.upv.es Copenhagen 19/06/2007