Conference: Industrial Districts Structure and Chances for Innovation: An Empirical Experience. Gabaldón-Estevan, D.; Fernández-de.Lucio I.; Tortajada-Esparza, E.; 5th Triple Helix Conference. The Capitalization of Knowledge: cognitive, economic, social & cultural aspects, Turin (Italy) 18-21 May 2005

1. 1
Industrial Districts’ Structure
and Chances for Innovation:
An Empirical Experience
Industrial Districts’ Structure
and Chances for Innovation:
An Empirical Experience
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2. 2
Global Trends
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3. 3
Production of the Main Producers
2002 Total Production: 5.904 millions of S.M.
35,57%
11,03%
10,26%
25,2%
8,6%
2,69%
2,74%
3,9%
China
Spain
Italy
Brazil
Indonesia
Turkey
Mexico
Other
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(ASCER 2003)

4. 4
Consumption of the Main Producers
2002 Total Consumption: 5.426 millions of S.M.
32,25%
6,03%
3,45%
2,03% 8,04%
43,96%
China
Spain
Italy
Brazil
Indonesia
Turkey
Mexico
Other
2,6%
1,66%
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(ASCER 2003)

5. 5
Exports of the Main Producers
2002 Total Exports: 1.385 millions of S.M.
7,22%
25,7%
31,62%
2,38%
5,2%
3,61%
5,2%
19,06%
China
Spain
Italy
Brazil
Indonesia
Turkey
Mexico
Other
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(ASCER 2003)

6. 6
Research Purpose
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7. 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)
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8. 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 commodity
Type B enterprises, namely providers of technology
and advanced services
B1 complex systems producers
B2 chemical products producers
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9. 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.
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10. 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.
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11. 11
Elements in the
Tile Production Process
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12. 12
Main elements in the value chain
Tile
Production
Distribution &
Consumption
Raw Material
Extraction
Machinery &
Equipments
Design
Glaze &
Colour
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13. 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
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(ASCER 2003)

14. 14
Main elements in the value chain
Tile
Production
Distribution &
Consumption
Raw Material
Extraction
Machinery &
Equipments
Design
Glaze &
Colour
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15. 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 )
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16. 16
The Sectoral Innovation System
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17. 17
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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18. 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.
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19. 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).
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20. 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.
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21. 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.
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22. 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
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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. 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.
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24. 24
Relations between agents of
different districts in Emilia-Romagna
(Istituto per la
Promozione
Industriale
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2002 )

25. 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.
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26. 26
Thank Thank yyoouu ffoorr yyoouurr aatttteennttiioonn
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Camino de Vera s/n
46022 Valencia
SPAIN
www.ingenio.upv.es
Turin 18/05/2005
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