Territorial knowledge dynamics in Europe: some results the … · 2014-03-26 · Anchoring Instrumental learning (focused investments) and specialisation Intelligent interactions

How to revive (old and new)

industries? The case of the Swiss

watchmaking

Olivier Crevoisier

Hugues Jeannerat

with inputs of C. Livi

University of Neuchâtel (Switzerland)

INSEAD, Business breakfast 2013

Abu Dhabi, the 28th of February 2013

Groupe de Recherche enGroupe de Recherche enEconomie TerritorialeEconomie TerritorialeGRGRETETGroupe de Recherche enGroupe de Recherche enEconomie TerritorialeEconomie TerritorialeGRGRETET

The “cultural turn” in economic geography

1. “Cultural industries” (cinema, media, publishing,…): Scott 2002,

2004,…

2. “Creative economy and cities” (arts, Knowledge intensive

business services, …). Florida 2002, Cooke and Lazzeretti 2008,…

3. The “experience economy” (memorable participation of the

customer). Pine and Gillmore 2004, Lorentzen 2010,…

4. The “knowledge economy” (systematic mobilisation of

knowledge in economic activities): Foray D. 2000, Cooke 2010,…

5. “Cultural resources” (pooled resources): Kebir L. 2008; Ostrom,

2008…

6. …

An increasing concern about culture, innovation, and territorial

development. Lash & Urry 1994; Molotch 2002; Philo & Kearns 1993; Scott

2008,…

– Regional crisis / « winning regions »;

– Technological change ;

– From national to the local / global economy ;

– Small is flexible and innovative (SMEs, local

development, the entrepreneur, etc.).

– Cumulative knowledge trajectories


Clusters, innovative milieus,

industrial districts, RISs, etc.

The context and the social demand at the

end of the eighties

The traditional theory: Territorial innovation

models and cluster policies

Model 1: Classic innovative milieus

(clusters)

- Intense local learning, occasional distant learning

- Weak international mobility of capital, labour and competences

A « mosaic » of competing and differentiating regions


Some contemporary changes

1. The huge increase of mobility and of ICTs…

…asks the question of local

anchoring capabilities


Mobility and anchoring: a typology

Berset A. and Crevoisier O. 2006 Crevoisier O. and Jeannerat H. 2009

MOBILE

KNOWLEDGE

DYNAMICS

REGIONAL KNOWLEDGE DYNAMICS

Poor

Rich

Poor

Knowledge allocation

Contextualisation of mobile

knowledge Knowledge reciprocal learning

Assimilation of local knowledge

Rich

What is an anchoring milieu?

An anchoring milieu is a set of local players

(firms individuals, public authorities, research

and training organisations, etc.) who interact

locally and with distant and/or mobile players

in order to develop ever more advanced

(efficient or meaningful) knowledge on the

basis of competition/cooperation rules.



1. The huge increase of mobility and of NICTs…



2. From “local / global” systems of production and

innovation…

…to multilocal, multiscalar production

and consumption networks”


The "commodification of

authenticity" in the watch industry


Jeannerat H. and Crevoisier O. 2010

Multi-sectoral

knowledge dynamics

in the promotion of the

Swiss Watchmaking

authenticity

Swiss watch

industry / watch

brands

Punctual events

(auctions, fairs,

shows,

exhibitions…)

Culturisation

through tourism,

museums,

architecture…

Creation of a

composite

companies in the

field of luxury

press

Convergence of

TV, movie

production, and

Internet

Territory of authenticity

production Territory of image

co-production

Territory of diffusion

International

communication, tourism

and symbolic milieu of

the city of Geneva

Milieu of Swiss watch

production and cultural

resources of the Jura

Fashion, design

and cultural

milieu of Paris

and Milan

Business services

milieu of the

Lausanne

metropolitan area Event organisation

system of Basle Territorial event

platform of the

America‟s Cup in

Valencia

Consumption

milieu of Tokyo or

Moscow

The territorial staging system of the Swiss Watchmaking

Source: Jeannerat and Crevoisier 2008

Territorial lifestyle

and media milieu of

Singapore


1. The huge increase of mobility and of NICTs…



2. From “local / global” systems of production and

innovation…

…to multilocal, multiscalar production

and consumption networks”

3. The intense competition from emerging economies

…asks for new market conventions of “value”

(authenticity, sustainability,…).


Value in the convention model:

Technical valuation in industry

Producer User

Innovation driven by

technology in production Distribution

Local Global

final purchase

commodification

Objectivation of

goods and services

Source: Jeannerat 2011


Valuation in the Swiss watchmaking industry

• Valuation is about what is „fake or real‟

• It relates to an idealised past origin

• Experiences support authentication:

• through experiential initiation

• through experiential relation between

producer and consumer

• Legitimating occurs through debates in

medias

• The territorial staging system organizes a

continuity between production and

consumption contexts Source: Jeannerat 2011

Authenticity valuation

Delegated consumption

in the original production

milieu

Founder Initiated

audience

(connoisseurs)

Ritualized

purchase

Ritualized

experiences

Authentification of a

good or a service


the perpetual quest of

an idealized

origin

Initiation and

legitimation of the original

value

Source: Crevoisier and Jeannerat 2011

Delegated original

production

in the consumption

milieu


Sustainable

valuation in the Swiss

solar technologies

• Valuation is what is “responsible”

and “irresponsible”

• It relates to a future, idealized, greener

planet. It is partly measured by

audience rates.

• Experiences support commitment: – Through technological experiment

– Through multi-local explorations, journeys

transmitted live by medias.

• The territorial staging system allows

customer / citizens take part

indirectly to the building of a

greener future

Market convention of Sustainability

valuation

Staged technical experiment

transmitted (live) by media

Prophetic

entrepreneur

Committed

audience

- Sponsoring

- Purchase

Audience

ratings

Experimentation of

“responsible”

innovations


a vision of an greener

future for the planet

Subscription

to the values

of sustainability

Source: Crevoisier and Jeannerat 2011

Social control

(critique of technical failures

and irresponsible social behavior)


4. From cumulative to combinatorial territorial knowledge

dynamics (EURODITE)

Substantial knowledge: economically

valuable thanks to exclusivity;

Significant knowledge: economically valuable

through diffusion and sharing.


Substantive

knowledge

(owned, controlled)

Significant

knowledge,

(authored, shared)

Properties

of

knowledge

Stabilised closed, defined,

converging

integrated in functional

devices

Evolving, open, diverging

Integrated in systems of

meaning

Economic

value

Based on the content of

knowledge and its

valorisation on various

markets (exploitation)

Due to exclusivity

Linked to people, to

communities and to

contexts

Due to sharing


The Swatch

group owns

more than

50‟000 protected

designs

In Skane,

inspector

Wallander;

Academic

researchers

Source: Crevoisier 2011

Substantive Significant

Mobility Through exchange,

submitted to contract

By sharing, submitted

to professional or

citizen community rules

Anchoring Instrumental learning

(focused investments)

and specialisation

Intelligent interactions

and contextualised

appropriation


A research hypothesis:

A cultural economy can only develop

where some knowledge is largely shared


A typology of regions in a European

knowledge system

Milieu of (significant) knowledge

Milieu of Knowledge embedding

Milieu of Knowledge embodying

Management of (substantive)

knowledge

Mobility through sharing: Mobility of people,

conferences, exhibitions, media, etc.

Contractual mobility: Markets of machines,

softwares, licenses, fairs, etc.

Munich biotech,

Slovakian and

Slovenian

telecoms Ruhr large

events, Skane,

Birmingham

lean

production,

Food in

Bornholm

Fast foods

in Paris

Toulouse GNSS,

Stuttgart

automotive KIBS,

Swiss new media

Urban or

local “buzz”

Industrial and

Tourism regions

Technology or

“symbolic” clusters

Kw as a commodity


4. From cumulative to combinatorial territorial knowledge

dynamics (EURODITE)

Substantial knowledge: economically

valuable thanks to exclusivity;

Significant knowledge: economically valuable

through diffusion and sharing.

5. Business models are more and more complex

what is paid for is often not what is valued by

users or customers


Value in the traditional model: an

exchange of existing values

P

Q

S

D

Price ≡ value


The Territorial Staging System (TSS)

Experiential engagement

as an economic resource

Production

resources

Consumption

resources STAGE

Stage setting as an

experiential resource

Stage

setting

Experiential

engagement

• Cities and regions are stages where value is created

(infrastructures, media, legitimizing players, etc.).


Conclusions and opening

• Taking seriously creativity and culture into account

supposes to escape radically from the traditional model:

• “supply” and “demand”, “needs”, “money” as a

counterpart of a “good”, to produce here and to sell

globally,…

• A typical space time pattern of value creation could be:

• Multi-local and multi-scalar production and

consumption networks;

• The Staging System as an hypothetical metaphor for

complex economic interactions (consumers, visitors,

inhabitants, citizens, medias, investors,…) (Lorenzen A.

and Jeannerat H. 2013).


Documents

Territorial knowledge dynamics in Europe: some results the … · 2014-03-26 · Anchoring Instrumental learning (focused investments) and specialisation Intelligent interactions