MAY PRIMARY ACTIVITIES BE INNOVATIVE? THE CASE OF GALICIAN MUSSELL FARMING

GONZALO RODRÍGUEZ RODRÍGUEZDpto. de Economía Aplicada.

Universidade de Santiago de Compostela

THE GALICIAN MUSSEL FARMING:THE PRODUCTION AREAS IN GALICIA.

THE GALICIAN MUSSEL FARMING:MAIN INVESTMENT ELEMENTS.

THE FARM: BATEA

THE BOAT

THE GALICIAN MUSSEL FARMING:MAIN FEATURES.

YearProduction value (producción 94.612.000 1.999Value Added Basic Prices (€) 71.170.000 1.999Investment 34.963.608 1.999Investment growth rate 103% 1995-1999Production (Tn) 250.000Share of mussel spanish 98%Share of european production 50%Number of farms (bateas) 3.338 1.999Number of production units < 1.735 1.999Number of boats 1.061 1.999Employment (Equivalent full time) 7.141 1999

THE CONCEPT OF INNOVATION

ELEMENTS OF THE CONCEPT

• DEPARTURE POINT: Improve process.• ARRIVAL POINT: 1st world introduction and aplication of

certain advance.• SYSTEMATIC PROCESS: opposite to isolated activities.

THE CONCEPT OF INNOVATION

WHAT HAPPEN WITH THOSE ACTIVITIES THAT ARE JUST IN A CHANGE OR IN CATCHING UP

PROCESS?

MAY THE DEFINITION INTRODUCES ANOTHER ELEMENTS?

• Sectorial meeds of innovation.• Territorial dimension: local/regional or global innovation.• Temporal dimensión: historical character of innovation.

MUSSEL CULTURE PATTERNS IN THE USE OF TECHNOLOGY.

SUPPLIER DOMINATED.

• Technological chage came from supliers on machinery and other producction inputs.

• Most technology is transferred internationally embodied in capital goods.

• Technological accumulation is focused on producction process.

• Small size of firms.• Temporal dimensión: historical character of innovation.• Production learning and suppliers are the main sources of

technological accumulation.

THE MILIEU.

•Spatial entity.•Group of players•Specific material elements and also non-material and institutional elements.•An organizational logic.•A learning logic.

MILIEU

+ • The milieu it´s capable to open up to the exterior. Internacional relations.• Their resources are organized, coordinate and relate by economic, cultural and technical structures that restore the exploitable resources for news productive combinations

INNOVATOR MILIEU

MUSSEL FARMING AS A INNOVATOR MILIEU.IN

NO

VA

TO

R M

ILIE

U

MIL

IEU

Spatial Entity

Group of players

Specific material and non material elements

Organizational logic

Learning logic

Open up to exterior

Sustainable relations

Organizational vicinity

Producers, suppliers up stream, down stream, quality control,

Habours net, Mussel Council building / Specific culture

Dense organizative net; cooperativenesss

Main kind fo knowledge: Tacit

Exports (21%)International organizations

Change point

MUSSEL FARMING AS A “MILIEU”.

- +

+

Little innovationwithout “milieu”

Pontentially innovator “milieu”

Innovationwithout “milieu”

Innovator “milieu”

ORGANIZATION INDICATORS

LE

AR

NIN

G I

ND

ICA

TO

RS

SOURCE: IRER /1991

MUSSEL FARMING

CHRONOLOGY OF INNOVATION:

Sources of technological

accumulation

Periods Main directions of technological

accumulation

1946

Invection Born of mussel farming Process: farming system Product: mussel

1946-1962

Production learning Experimental period Process: Desing of the batea,Materials, Farming techniques,Location of the bateas,etc

1962-1975

Production Learning Growth period Process: Number of cords

1975-1995

Production Learning.Machinery suppliers

Modernization Period Process: Unfolder machyne, tubularnet, hydraulic crame, etc.

Management: organizationalstructure: sales central, associativenet.

1995-

Production learning.Suppliers.Consulting services.R&D institutions

Actual period Process: incremental innovations Product:new presentations. Management: DOP, Mussel Council

INSERTION OF THE MUSSEL CULTURE IN THE FISHING INNOVATION SYSTEM.

MUSSEL CULTURE

MUSSEL MILIEU

FISHING-CONSERVESSECTOR

R&D institutions

Tehnological centers

Training centers

Quality control centres

Specific magazines

Promote agency

Specific public administration

INSTITUCIONAL INFRAESTRUCTURE

(PROBABLE) CONCLUSIONS.

• The behavior of mussel culture is in the own parameters of the supply-dominated sectors.

• Mussel culture may be regarded a milieu potencially innovator, taking into account their strong organizational logic.

• Mussel culture needs longs periods to get new innovations, as a consecuence of the predominat use of tacit knowledge and It depends strongly to their environment to innovate.

• Most of their innovations has a regional character, but it means a increasing use of formal knowledge.

• Just this direction may be taking into account both by policy makers and for managment of innovation at firm level

• As a general hypothesis, we think that primary activities may be innovator but they have dificulties to accumulate enaugh capabilities. Them, they are very dependent of their productive environment. As they need to accelerate the learning and innvation process, they need to participate in more complex systems of innovation.