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Dott. Luciano Consolati
Section I
Industrial Clusters Development Policies
1
1Description
Industrial Clusters
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Perché occuparsi dei distretti?
• Clusters are an example of development from the basis in the presence of limited material resources
• Clusters are one method of local development that involves most local subjects
• Clusters are cognitive labs with extended and dynamic learning processes
• Clusters - for developing countries - can contribute to the surfacing from poverty of entire local communities extending the level of social belonging
• Clusters represent a form of economic democracy that contrasts with the model of big multinational companies
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Why are clusters of interest?
“Small unknown factories whatever their numbers, are at a great disadvantage compared to large ones, unless there are many condensed in one same industrial district (…) The location of productive units promotes and educates ability and taste and spreads technical knowledge. Where there are large numbers of people dedicated to one same kind of activity they educate each other”
A.Marshall
“Industrial clusters are a local concentration of inter-industrial relations which present reasonably stable characteristics over time (…) A socio-territorial entity characterised by the active joint presence in a limited naturalistic and historically determined area of a community of people and a population of industrial enterprises (…) The community and its enterprises tend – so to speak – to mutually interact.”
Becattini
Arnaldo Bagnasco, “Three Italies. Territorial Problems related to Italian Development” Sebastiano Brusco, “Small firms and industrial districts: the experience of Italy”
Gioacchino Garofoli, “Local Development Problems : Small Enterprises Systems”
Industrial Clusters Introduction
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How is a cluster born
MKT
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Method of Production 1
• System of enterprises with a vertically integrated cycle on a territorial level. Important work division between single enterprises that minimises costs (specialisation economy) and promotes new business opportunities.
• Economies of scale: each enterprise is both producer of inputs and consumer of outputs in the cluster.
• Continuing process of technological innovation
• High level of specialisation by phases and components (learning by doing)
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Method of Production 2
• High horizontal competition between enterprises
• Cooperation between enterprises and public bodies on external economies
• Weak entry barriers
• Strong exit barriers: small entrepreneur knows how to do his work and cannot easily change
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Method of Production 3
A local productive system can be interpreted as an area with a centre that creates
A vertically integrated productive cycle
sub-contractor of semi-finished products
sub-contractor of precision equipment
sub-contractor of workmanship
Assembly sub-contractor
Companies that operate in the final phases of production
Companies that operate in the first phases of production
LEADER COMPANIES
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Method of Production 4
• Outsourcing of surplus• Market Growth
• Production with decreasing unit costs • External purchasing of products
at lower prices• Geographic proximity between enterprises and well-established existing relations
• Reduction of transaction costs and greater reliability
• Outsourcing of diseconomies and of phases not established in an optimal manner
• Lack of balancing in productive processes
“Decisive factors: work sharing
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Method of Production 5
• More professionally prepared workers (“Learning by
doing” A. Smith)
• Saving and optimisation of production phases
• Greater flexibility in the management of production processes
• Development of special machinery for production by other companies, linked to the cluster, that increases results (learning by interacting)
•
Higher Productivity Level
Advantages resulting from work division
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Mechanical Manufacturing
Thermic Treatments
The Productive Cycle of “Sistema Lumezzane”
Fusion
Stamp Construction
Raw Materials
Cleaning of Metals
MKT
Leading Company
Orders
Final Product
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Productive line of non-ferrous metals
Foundry Refinery
Taps/Fittings Valves Door Handles Fastenings
Mechanical Manufacturing
Assembly
Raw Materials: chipboard, scraps
Finished Product
Shearing of burrs, Piercing, Boring, etc
Cleaning Polishing, Shining, Burnishing, etc
Degreasing
Burrs, CylindricalBilletts
Other internal workmanship (cutting to
cold, etc)
Pressed piece
Fu
sio
n (
ele
ctric
ove
ns)
Fu
sio
np
ress
ing
Threa
ds, s
ectio
n ba
rs e
alum
inium
and
bra
ss
draf
ts
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Stamping to cold
Preliminary detersion
Cleaning
Productive line in Steel Transformation
Superficial finishing
Semifinished: plates, billetts, steel sections
From Outside the
Area
Finished Product
Funneling
PicklingRinsingDrying
With milling machines, emery , etc D
ott.
Lu
cian
o C
onso
lati
– 0
9.20
05 -
Mex
ico
The Main Distinctive Charateristic
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The first product of a cluster is its capacity
to transfer the entrepreneurial spirit to its
people. These become the players in their
own economic growth process and in their
social achievement.
The Industrial Cluster Model
Four groups of key factors:
• Location and space
• Social and cultural
• Economics and organisation
• Institutional
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Location and Space Factors
• Geographic proximity and sectorial specialisation
• Small urban dimension
Reduction in transportation and transaction costs
Circulation of information and responsibilities
Lower work and land costs and stronger social cohesion
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Social and Cultural Factors
Stable Human Capital
• Family’s central role and work division between family members as a legacy of a rural society
• Mutual and shared social values
• High level of social mobility and aptitude to entrepreneurship
• Faith as a key issue in the system of economic relations
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• Possibiliy of reaching high levels of specialisation
• Balance between cooperation and competition
• Labour specialisation as a “public asset” (safekeeper of common knowledge)
Combine economies of scale and of purpose
Collective learning (learning by localizing, learning by
specializing, learning by interacting
Possible co-operation (stability, long term, know-how
exchange)
Economic and Organisational Factors
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Political and Institutional Factors
• Support role in the construction of clusters, key role in supporting development and innovation
• Participation especially at a local and/or regional
level (both with public and private or mixed
bodies)
Regional agencies, service centres,
entrepreneurial associations, consortia
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Species of Capital
ECONOMIC CAPITAL
SYMBOLIC
CAPITAL
INTELLECTUAL
CAPITAL
HUMAN CAPITAL
SOCIAL CAPITAL
Creation and valorization processes and transformation of forms of capital are the base of a competitive advantage
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Anatomy of a cluster
Raw materials
Machinery
Semi finished
SUPPLIERS
Faith/Confidence
Labour market
SOCIAL CAPITAL
Aptitude
Value
Accessibility
Trasport
Water purification
Building area
MATERIAL CAPITAL
Banks
Designers
Trasports
Agents
PRIVATE SERVICES
TYPICAL ACTIVITIES
Subcontracting CLIENTS
Markets
Schools
Category associations
COLLECTIVE SERVICES
Service centres
Consortia
Research
Marketing
ProductionSubcontracting
Subcontracting
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