Social Capital and Industrial Districts. Approaching the issue

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Social Capital and
Industrial Districts.
Approaching the issue
DDaanniieell GGaabbaallddóónn--EEsstteevvaann
Institute of Innovation and Knowledge Management

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Part 1: General Research Purpose

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Purpose
What is the role of social capital for the development,
diffusion or adoption of innovations on a given
industrial district?
How important is to have all relevant agents within the
same industrial district?
What is the contribution of intermediary institutions
for the well functioning of industrial districts?

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Part 2: Theoretical Framework

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The Industrial Districts Perspective I
(Becattini; Brusco; Pyke...)
from industrial sector to industrial district (ID)
ID as:
Socio-territorial entity (the region matters).
Active presence of people and SME enterprises.
A shared system of values and ideas.
A developed system of norms and institutions.

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The Industrial Districts Perspective II
ID and innovation:
increasing transfer of information
increasing confidence
lowering transaction costs
improving access to experienced and high-skilled
human capital
privileged perspective of those inside the district
the pressure of competitiveness
availability of resources inside the district

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The Social Capital Perspective I
(Bourdieu; Coleman; Loury; Putnam...)
putting social structure
into the rational action paradigm
SC as:
Social relations that allow individuals to claim access
to resources possessed by their associates, and
the amount and quality of those resources
(Portes, 1998)
trust, norms, reciprocity, embeddedness

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The Social Capital Perspective II
SC effects:
(+) a resource for social control
(+) a source of family support
(+) a source of benefits through extra familiar
networks
(-) exclusion of outsiders
(-) prevention of success of member initiatives
(-) restriction of individual freedom

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Part 3: Exploratory Study

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Exploratory study
Previous to study the role of social capital for
innovation on an industrial district we wanted to
deeply study and understand the particular
district composition and functioning.
Consequently we focused on the two most
important ceramic tile industrial districts in
Europe:
Sassuolo (Italy) & Castellon (Spain)

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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

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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.

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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;
– Responsibles of research institutions in charge of the
industry R&D;
– Academics whose work had intensively been focussed
on the issue.

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Main elements in the value chain
Tile
Production
Distribution &
Consumption
Raw Material
Extraction
Machinery &
Equipments
Design
Glaze &
Colour

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Production typology in 2002
Italy Spain
Porcelanic tile 329379 54.4% 55335 8.5%
Enamel 453502 74.9% 608034 93.4%
Not Enamel 151975 25.1% 42966 6.6%
Wall tile 122306 20.2% 240870 37.0%
Floor tile 438171 72.4% 410130 63.0%
Total 605477 651000
(ASCER, 2003)

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Firms and employment in 2003
Italy Spain
Firms 315 294
Employees 30264 25200
Employees/Firm 96.1 85.7
(ASCER and ASSOPIASTRELLE )

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Sectoral Innovation System
Legal & Institutional framework
Productive environment
Technological
and advanced
services
providers’
environment
Scientific environment
(Adapted from Fernandez-de-Lucio et al. 1996 )

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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.

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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).

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Technological and Advanced Services
Providers’ Environment
CASTELLON
Technological innovation is driven by
the glaze sub sector and assisted
by ITC (Technological Institute of
Ceramics).
Central role of ITC on education and
on process innovations.
Education on chemistry and
cooperation from 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 CCB (Ceramic Centre of
Bolonia) although being important
is not as central as its Spanish
counterpart.
Excellence on design, business
administration and
commercialization.

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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.

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Environmental Interactions
CASTELLON
Information flows between UJI, 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 through the relationship
between the Spanish ceramists
and the Italian capital goods
providers.
Predominant role of institutional
actors.
SASSUOLO
Dense network of actors invigorated
by the capital goods companies.
The internationalization of the Italian
district with the Spanish one is
through the relation of the Italian
ceramist with the Spanish glaze
providers.
Predominant role of business
associations.

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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.

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Part 4: Conclusions

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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.

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Relations between agents of
different districts in Emilia-Romagna
(Istituto per la
Promozione
Industriale,
2002 )

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Relations between agents of different districts
in the Valencian Region
(Ministerio de
Industria,
Turismo y
Comercio,
2005)

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Part 5: Further Research

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Further Research
1) the role of ATC (the Spanish Technical
Association) in articulating innovation transfer
across the Spanish district;
2) the role of the manager club (not mentioned in
this work) in stimulating and adopting of
innovations; and
3) to what extent social capital articulates relations
between agents from different districts, both of
districts in the same sector but different
countries, and from different sectors in the same
country.

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Thank Thank yyoouu ffoorr yyoouurr aatttteennttiioonn
INGENIO (CSIC-UPV)
Camino de Vera s/n
46022 Valencia
SPAIN
www.ingenio.upv.es
Nijmegen 22/08/2005

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