Social Capital and Industrial Districts. Approaching the issue

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Institute of Innovation and Knowledge Management

Daniel Gabaldón-EstevanDaniel Gabaldón-EstevanDaniel Gabaldón-EstevanDaniel Gabaldón-Estevan

Social Capital and Industrial Districts.

Approaching the issue

Social Capital and Industrial Districts.

Approaching the issue

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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 informationincreasing confidence lowering transaction costsimproving access to experienced and

high-skilled human capitalprivileged perspective of those inside the

districtthe pressure of competitivenessavailability 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 commodityType B enterprises, namely providers of technology and advanced services

B1 complex systems producersB2 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

Machinery & Equipments

Glaze & Colour

Raw Material Extraction

Design

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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

Scientific environment

Technological and advanced services providers’ 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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INGENIO (CSIC-UPV)Camino de Vera s/n46022 ValenciaSPAIN

www.ingenio.upv.es

Nijmegen 22/08/2005

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Technology

Social Capital and Industrial Districts. Approaching the issue