Federazione dei Distretti Italiani Via Torino 151/C 30172 Mestre – Venezia Tel: 041 2517511 Email: federazionedistretti@si...
The SME Italy vs. Europe 85.50 93.30 90.20 93.00 83.20 91.30 94.90 92.10 93.00 81.40 79.70 92.10 Micro 40.80 44.40 50.70 2...
Italy is specialised in production and export of traditional manufacturing (different from Germany) Traditional Sectors (Q...
ITALIAN CLUSTERS: THE NUMBER <ul><li>156 districts: 12.5 millions of citizens </li></ul><ul><li>215.000 manufacturing ente...
Source: Istat (2005) THAT IS TO SAY: 67,0 <ul><li>Textiles and clothing </li></ul>51,0 <ul><li>Metals and metal products <...
SOME CHARACTERISTICS OF A CLUSTER <ul><li>High concentration of SME in a specific area;  </li></ul><ul><li>High specializa...
Challenges and responses <ul><li>Re-configurations of supply chains on a global basis </li></ul><ul><li>Increasing cost co...
Static specialization however does not mean that Italy has not reacted …. and in particular the clusters  <ul><ul><li>Offs...
clothing Delocalization of italian firms by sectors
A strategic answer Skill ugrading: a way out of price competition
Area OECD: fiducia dei consumatori OECD, consumer confidence index: una misura della fiducia dei consumatori
EDISON FOUNDATION Export Index of 101 major industrial districts: 1995-2009 cumulative export growth over last 4 quarters ...
The Members of Federazione Distretti Italiani <ul><ul><li>OUR DISTRICTS </li></ul></ul><ul><ul><li>76.000 enterprises </li...
FEDERAZIONE DEI DISTRETTI ITALIANI PRINCIPAL AIMS <ul><li>To promote links and the exchange of information and experiences...
The Federazione Approach <ul><li>But…………… before considering the merits of the action is necessary to understand the chara...
Districts/Clusters setting up MKT Production cycles  possible to be  decompose into their single phases
Surplus outsourcing Market expansion Production with real unitary decreasing costs Outdoor purchase of products at lower p...
Highly skilled workers (“Learn-by-Doing”) Saving and optimization of time Development of specialized machines in the  prod...
District/Cluster Factors of Success   The first is its people and its enterpreneurship its will to set up its own business...
Articulation of  industrial districts Raw materials Machinery Semi-finished SUPPLIERS Trust Job market SOCIAL CAPITAL Fami...
The model of industrial districts/clusters <ul><li>Four groups of key factors  </li></ul><ul><li>locational and spatial </...
Locational and spatial factors <ul><li>geographical proximity and sectoral specialisation </li></ul><ul><li>small urban di...
Social and cultural factors <ul><li>central role of the family and job sharing among the family members heritated from the...
Economic and organisational factors <ul><li>Possibility of extreme  specialisation </li></ul><ul><li>Balance between coope...
Institutional and policy factors <ul><li>Marginal role in establishing competitive local systems, but key role in supporti...
THE DISTRICTS’LIFE CYCLE source: Federazione dei Distretti Italiani Currently the Italian districts have entered a phase o...
<ul><li>Some districts are undergoing strong development (the dynamic districts: provided with efficient governance, they ...
THE NEW CLASSIFICATION OF ITALIAN DISTRICTS/CLUSTERS  source: Federazione dei Distretti Italiani <ul><li>Dynamic districts...
WHAT ABOUT THE FUTURE? <ul><li>encouraging technology transfer and process innovation; </li></ul><ul><li>supporting intern...
Support process for a policy cluster of revitalisation/development versus cluster  branding.  A collective process……  1 <u...
Support process for a policy cluster of revitalisation/development, versus cluster branding.  A collective process…… 2 <ul...
The Four Main Phases I. Build-up trust  II. System of relations/ connections III.  VISION  / Management strategy IV. Actio...
SOME WORKS IN PROGRESS <ul><li>Italian District Observatory </li></ul><ul><li>Observatory on Mechanic clusters  </li></ul>...
-   promote the networking of all relevant actors at the local level to avoid dispersion of resources and increase the eff...
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Cluster Branding in Italy by Mr. Luciano Consolati during SME Convention Vibrant Gujarat2011

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  • A fronte delle pressioni dal lato dei costi e della competizione di prezzo portata dai nuovi concorrenti, le imprese manifatturiere italiane hanno attuato strategie di differenziazione spostandosi sulle fasce di maggior qualità e servizio, come è documentato dalla forte crescita dei valori medi unitari delle esportazioni di manufatti.
  • Cluster Branding in Italy by Mr. Luciano Consolati during SME Convention Vibrant Gujarat2011

    1. 1. Federazione dei Distretti Italiani Via Torino 151/C 30172 Mestre – Venezia Tel: 041 2517511 Email: federazionedistretti@siav.net Dott. Luciano Consolati Cluster Branding in Italy Federazione Distretti Italiani Technical Committee
    2. 2. The SME Italy vs. Europe 85.50 93.30 90.20 93.00 83.20 91.30 94.90 92.10 93.00 81.40 79.70 92.10 Micro 40.80 44.40 50.70 28.60 39.70 27.40 44.50 27.40 54.50 43.50 41.40 Grande 18.30 17.80 16.20 20.70 21.90 16.60 16.90 18.60 20.60 22.70 18.70 Medie 20.00 17.70 15.60 20.00 21.70 23.40 19.10 23.90 16.40 20.70 20.90 Piccole 20.90 20.10 17.50 30.60 16.70 32.50 19.50 30.00 8.50 13.10 19.00 Micro Value Added 49.80 42.50 51.00 23.40 37.20 28.30 41.60 27.90 52.50 47.00 33.40 Grande 17.40 18.80 18.30 21.60 24.60 17.50 17.60 19.40 20.50 22.70 19.30 Medie 16.70 19.20 15.40 22.50 21.60 23.70 20.40 24.90 16.90 18.50 22.90 Piccole 16.20 19.60 15.30 32.50 16.50 30.50 20.40 27.80 10.10 11.80 24.30 Micro Turnover 31.10 44.90 36.90 41.50 18.00 33.00 38.50 17.80 37.70 20.30 39.. 38.80 33.30 Grande 18.90 15.30 16.10 17.60 17.30 20.40 14.90 12.50 16.60 14.80 19.50 23.50 15.30 Medie 24.40 18.10 19.00 18.40 21.30 24.20 24.30 21.90 21.20 24.40 22.50 23.80 21.40 Piccole 25.50 21.70 28.00 22.50 43.40 22.40 22.30 47.80 24.50 40.60 19.10 13.90 30.00 Micro Employment 0.40 0.20 0.20 0.10 0.40 0.30 0.10 0.20 0.10 0.50 0.70 0.20 Grande 1.90 0.90 1.50 1.00 2.20 1.10 0.50 1.10 .070 2.60 3.20 1.00 Medie 12.20 5.60 8.10 5.90 14.20 7.30 4.50 6.70 6.20 15.50 16.40 6.70 Piccole Enterprises NO UK S FIN P A NL L I IRL F E EL D DK B
    3. 3. Italy is specialised in production and export of traditional manufacturing (different from Germany) Traditional Sectors (Quota del valore aggiunto e dell'occupazione sul manifatturiero 2004) 0 5 10 15 20 25 Germania UE Italia Spagna Francia UK Value Added Employment Fonte: Eurostat
    4. 4. ITALIAN CLUSTERS: THE NUMBER <ul><li>156 districts: 12.5 millions of citizens </li></ul><ul><li>215.000 manufacturing enterprises </li></ul><ul><li>2 million people employed </li></ul><ul><li>46% of Italian exports </li></ul><ul><li>Il 27% of Italian PIL </li></ul>
    5. 5. Source: Istat (2005) THAT IS TO SAY: 67,0 <ul><li>Textiles and clothing </li></ul>51,0 <ul><li>Metals and metal products </li></ul>51,6 <ul><li>Mechanics </li></ul>55,8 <ul><li>Wood and wood products (furnishings not included) </li></ul>60,4 <ul><li>Glass and ceramics (non metal mineral) </li></ul>66,9 <ul><li>Leather and footwear </li></ul>EXPORTS AND DIFFERENT SECTORS 46,1 TOTAL EXPORTS 39,3 PEOPLE EMPLOYED (manufacturing sector) 25 PEOPLE EMPLOYED (of all productive sectors) 40 MANUFACTURING ENTERPRISES %
    6. 6. SOME CHARACTERISTICS OF A CLUSTER <ul><li>High concentration of SME in a specific area; </li></ul><ul><li>High specialization in a productive sector; </li></ul><ul><li>Cooperation among enterprises; </li></ul><ul><li>Integration of enterprises with the local place of reference, its tradition and its culture </li></ul><ul><li>A DISTRICT/CLUSTER IS A SPONTANEOUS AGGREGATION OF ENTERPRISES </li></ul>
    7. 7. Challenges and responses <ul><li>Re-configurations of supply chains on a global basis </li></ul><ul><li>Increasing cost competition from NICs </li></ul><ul><li>Need for strategic flexibility and proactiveness beyond more short-term responsiveness </li></ul><ul><li>Development of Innovation capabilities to differentiate </li></ul><ul><li>Managerial capabilities to stay competitive within global supply chains </li></ul>
    8. 8. Static specialization however does not mean that Italy has not reacted …. and in particular the clusters <ul><ul><li>Offshoring of low value added phases of production </li></ul></ul><ul><ul><li>Quality upgrading, especially on traditional sectors and on UE markets </li></ul></ul>
    9. 9. clothing Delocalization of italian firms by sectors
    10. 10. A strategic answer Skill ugrading: a way out of price competition
    11. 11. Area OECD: fiducia dei consumatori OECD, consumer confidence index: una misura della fiducia dei consumatori
    12. 12. EDISON FOUNDATION Export Index of 101 major industrial districts: 1995-2009 cumulative export growth over last 4 quarters (EUR billions at current prices)
    13. 13. The Members of Federazione Distretti Italiani <ul><ul><li>OUR DISTRICTS </li></ul></ul><ul><ul><li>76.000 enterprises </li></ul></ul><ul><ul><li>490.000 people employed </li></ul></ul>
    14. 14. FEDERAZIONE DEI DISTRETTI ITALIANI PRINCIPAL AIMS <ul><li>To promote links and the exchange of information and experiences: to develop the network </li></ul><ul><li>To promote relations with the decision-making centres of industrial policy (national and EU levels) </li></ul><ul><li>To promote international relations with other clusters and organizations </li></ul><ul><li>To promote the “know-how” and communicate the situation of Italian economy; </li></ul><ul><li>To promote cluster branding to improve quality and enlarge the model in new sectors of activity ( rural, technological, services). </li></ul>
    15. 15. The Federazione Approach <ul><li>But…………… before considering the merits of the action is necessary to understand the characteristics of the Italian model, beginning with the birth of the district . </li></ul>
    16. 16. Districts/Clusters setting up MKT Production cycles possible to be decompose into their single phases
    17. 17. Surplus outsourcing Market expansion Production with real unitary decreasing costs Outdoor purchase of products at lower prices Space contiguity between enterprises and existence of consolidated relationships Reduced transaction cost and higher intrinsic reliability “ Sub-division” determining factors Outsourcing of diseconomies and unbalancing factors Unbalance of production processes
    18. 18. Highly skilled workers (“Learn-by-Doing”) Saving and optimization of time Development of specialized machines in the production for sub-contractors and intended to improve the production processes HIGHER PRODUCTIVITY Elastic managing of production timetable (work timetable) Advantages coming from “sub-division”
    19. 19. District/Cluster Factors of Success The first is its people and its enterpreneurship its will to set up its own business then……………….. Flexibility Professionality High competitiveness between firms Continuous investement Important role played by local banks Co-operation with public bodies
    20. 20. Articulation of industrial districts Raw materials Machinery Semi-finished SUPPLIERS Trust Job market SOCIAL CAPITAL Family Role Value Accessibility Transports Water purifying Building land INFRASTRUCTURE CAPITAL Banks Designers Transports Agents PRIVATE SERVICE TYPICAL ACTIVITIES Sub contractors CUSTOMERS Markets Schools Trade associations SOCIAL SERVICES Services centres Consortiums Research Marketing Production Sub contractors Sub contractors
    21. 21. The model of industrial districts/clusters <ul><li>Four groups of key factors </li></ul><ul><li>locational and spatial </li></ul><ul><li>social and cultural </li></ul><ul><li>economic and organisational </li></ul><ul><li>institutional </li></ul>
    22. 22. Locational and spatial factors <ul><li>geographical proximity and sectoral specialisation </li></ul><ul><li>small urban dimensions, that means: </li></ul><ul><ul><li>reduction of transportation and transaction costs </li></ul></ul><ul><ul><li>circulation of information and knowledge </li></ul></ul><ul><ul><li>lower labour and land costs, social cohesion </li></ul></ul>
    23. 23. Social and cultural factors <ul><li>central role of the family and job sharing among the family members heritated from the rural society; </li></ul><ul><li>common social background and values; </li></ul><ul><li>high social mobility and entrepreneurship attitude </li></ul><ul><li>trust as a the key issue in business relationships </li></ul>
    24. 24. Economic and organisational factors <ul><li>Possibility of extreme specialisation </li></ul><ul><li>Balance between cooperation and competition </li></ul><ul><li>Specialisation of the workforce as “public good” (repository of common knowledge) </li></ul><ul><li>joint scale and scope economies </li></ul><ul><li>collective learning (learning by localizing, learning by specializing, learning by interacting </li></ul><ul><li>partnershipping (stability, long-termism, know-how exchange) </li></ul>
    25. 25. Institutional and policy factors <ul><li>Marginal role in establishing competitive local systems, but key role in supporting their growth and innovation </li></ul><ul><li>Interventions mainly at local or regional level (both public and private actors) </li></ul><ul><li>regional agencies, business service centres, entrepreneurs’ and artisan associations, consortia of firms </li></ul>
    26. 26. THE DISTRICTS’LIFE CYCLE source: Federazione dei Distretti Italiani Currently the Italian districts have entered a phase of maturity and, as is the case in such instances, it is necessary to adopt revitalisation strategies in order to avoid crisis and sustain development DEGREE OF INTERACTION TIME Formation Development Maturity Revitalisation Districts Revitalisation / Development Crisis
    27. 27. <ul><li>Some districts are undergoing strong development (the dynamic districts: provided with efficient governance, they put forward strategies that guarantee development as well as a constant increase in income and exports) </li></ul><ul><li>Others are in acute crisis (vulnerable districts: lacking in governance, poorly integrated in their area, marked by competition from low cost countries) </li></ul>THE DISTRICTS’ SUCCESS - OR CRISIS - DEPENDS ON THE STRATEGIES ADOPTED
    28. 28. THE NEW CLASSIFICATION OF ITALIAN DISTRICTS/CLUSTERS source: Federazione dei Distretti Italiani <ul><li>Dynamic districts </li></ul><ul><li>Mature districts </li></ul><ul><li>Vulnerable districts </li></ul><ul><li>Virtual districts </li></ul>Efficient governance, strategies that guarantee development and constant increase in income and export quotas, intense cooperation among enterprises presenting strong interdependence in their production cycles; lacking in governance, poorly integrated in their area, marked by competition between enterprises. They do not develop cooperation strategies, the businesses operate separately, and district membership, in times of negative short-term fluctuations, represents a factor of risk rather than an opportunity; only exist on paper, “imposed” by regional decrees; these actually only represent industrial areas. strongly rooted in their area of origin and in their local community, but do not have an efficient governance, while the cooperation between businesses is spontaneous rather than planned. The district aggregation gives way to positive performances, but the advantages are not evenly distributed, favouring only a few enterprises;
    29. 29. WHAT ABOUT THE FUTURE? <ul><li>encouraging technology transfer and process innovation; </li></ul><ul><li>supporting internalization and exports among the districts’ enterprises; </li></ul><ul><li>promoting innovative finance instruments; </li></ul><ul><li>developing cooperation among district enterprises to create networks of enterprises. </li></ul>THE ITALIAN DISTRICTS/CLUSTERS ARE THE DRIVING FORCE OF OUR MADE IN ITALY PRODUCTS
    30. 30. Support process for a policy cluster of revitalisation/development versus cluster branding. A collective process…… 1 <ul><li>Phase 1 : Cognitive survey and creating relationships based on trust (problem: who are the actors). </li></ul><ul><li>Phase 2: From research…. to possible action (problem: building-up of consensus and identifying the right representative of local interests whilst preserving entrepreneurs as the focal point). </li></ul>
    31. 31. Support process for a policy cluster of revitalisation/development, versus cluster branding. A collective process…… 2 <ul><li>Phase 3: Shared definition of a strategic vision for the singling out of priorities and the creation of specific work groups (problem: building -up of a leadership that will convey the vision and characterise the process’s institutionalisation). </li></ul><ul><li>Phase 4: One must proceed through the constitution and the identification of collective subjects appointed for the realisation of projects and specific actions (problem: starting-up of processes and initiatives that do not come into conflict with Bodies and existing situations and that will bring results in a short term). </li></ul>
    32. 32. The Four Main Phases I. Build-up trust II. System of relations/ connections III. VISION / Management strategy IV. Action and Feedback
    33. 33. SOME WORKS IN PROGRESS <ul><li>Italian District Observatory </li></ul><ul><li>Observatory on Mechanic clusters </li></ul><ul><li>Observatory on textile clusters </li></ul><ul><li>District rating </li></ul><ul><li>Research in operative application of Innovative finance tools </li></ul><ul><li>Agro-foodstaff online: product promotion and internalisation </li></ul><ul><li>Promotion and technological innovation projects </li></ul><ul><li>Pilot scheme for renewable energy </li></ul>
    34. 34. - promote the networking of all relevant actors at the local level to avoid dispersion of resources and increase the effectiveness of interventions and the integration of different components of the local economy within the system - generating local leading institutions, which act as &quot;catalysers&quot;, able to develop strategic development guidelines for the cluster by involving and coordinating different local actors in policy initiatives to fulfil common objectives; - Public Policies as support to development and cooperation among local energies and competencies and not as substitute Final Suggestions

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