Thesis defense 2009 Darsavelidze

Davit DarsavelidzePhd Student, Erasmus Mundus beneficiary

ATEI of Thessaloniki,

Greece Iv. Javakhishvili Tbilisi State University,

Georgia

Supervisor: Prof. Dr. Nicos Komninos

URENIO16 DECEMBER, 2009

Progress Research for PhD Degree in Economics

INNOVATION & CLUSTERSAS DRIVERS OF LOCALIZATION VS. GLOBALIZATION

Hellenic Republic

Loca

lizat

ion

vs. G

loba

lizat

ion

Innovation

PRESENTATION HIGHLIGHTSPRESENTATION HIGHLIGHTS

1. INNOVATION - drive of development (Literature review)

• Term of Innovation

• Triple Helix model of innovation

• Cluster and the diamond model of competition

• Innovation environment

2. TOURISM CLUSTER of Thessaloniki

• Short review of History & Cultural heritage

• Stakeholders – Presence, Attitudes & Networking

• Triple helix and Diamond model

• Intelligence - Tool to develop networking

3. Conclusions and recommendations

INNOVATION - DEFINITION INNOVATION - DEFINITION

“The commercially successful exploitation of new technologies, ideas or methods through the introduction of new products and

processes, or through the improvement of existing ones. Innovation is a result of interacting learning process that involves

often several actors from inside and outside the companies” (EC DG XIII, 1996)

Innovation is new use of combination of different existing &/or new knowledge to create or improve

(1)product, (2)production process or (2)organization

1. INNOVATION - drive of development (Literature review)1. INNOVATION - drive of development (Literature review)

TRIPLE HELIX MODEL of InnovationTRIPLE HELIX MODEL of Innovation

1. INNOVATION - drive of development (Literature review) 1. INNOVATION - drive of development (Literature review)

Government - Industry - Academia(Etzkowitz 2000)

Growth of Community Involvement

To sustain development To rise input of all stakeholders To share responsibility for outcome To develop strong social capital

+ Community

Triple Helix model

CLUSTERS THEORY & DIAMOND MODEL OF COMPETITIONCLUSTERS THEORY & DIAMOND MODEL OF COMPETITION


Cluster “Geographic concentration of interconnected companies and institutions in particular field” brings competitive advantages

laid more in local Relations, Knowledge and Motivation hardly matched by distant rivals.

(Porter 1998)

INTELLIGENT ENVIRONMENT IN URBAN TERRITORIESINTELLIGENT ENVIRONMENT IN URBAN TERRITORIES


World Wide Web& Other Net Based Networking Means Communication

Technologies

Community Intelligence

IntelligentEnvironment

Information Management Tools

Institutional Intelligence

Re

al

Vir

tua

l

Real Innovation Environment

Environment to innovate Environment to innovate at a high scale With at a high scale With

advanced IT technologies and competenciesadvanced IT technologies and competenciesDeveloping virtual world Developing virtual world

to link the gap between space and timeto link the gap between space and time

INTELLIGENT ENVIRONMENTINTELLIGENT ENVIRONMENT


Intelligent Cities

Brings togetherskills, institutions & virtual spaces of cooperation

sustaining creation of new knowledge (researchresearch),

monitoring knowledge flows (intelligenceintelligence), disseminating existing knowledge (technology transfer)technology transfer),

applying knowledge (innovationinnovation) developing new activities based on knowledge (incubationincubation)

and managing knowledge remotely (e-governmente-government) (Komninos 2002, 2008, 2009).

2. TOURISM CLUSTER OF THESSALONIKI2. TOURISM CLUSTER OF THESSALONIKI

Highlights:

Short Review of History &

Cultural Heritage

Triple Helix & Stakeholders -

Presence, Attitudes &

Networking

Diamond Model of

Competition

Intelligence - Tool of

Innovation & Networking

SOURCE OF THE RESEARCH & SWOT OF ATTITUDESSOURCE OF THE RESEARCH & SWOT OF ATTITUDES

• Main sources of information:

– Field work - Interviews with

local tourism stakeholders

– Official statistics

– Promotional materials

– Scientific literature

• SWOT analysis of networking

on a Cartesian coordinate system

2. TOURISM CLUSTER of Thessaloniki 2. TOURISM CLUSTER of Thessaloniki

Hellenic dominance Influence of Other Cultures

Alexander the great 336–323 BC

City foundation 315 BC

168 BC Romans power

Byzantine culture 379

1204 Latin Empire

Byzantine culture 1246

1423 Venetian Republic

1430 Ottoman Rule

Independence - Balkan Wars 1912

1941 Nazi Germany occupation

Hellenic republic 1944

SOME LANDMARKS OF THE HISTORY OF THESSALONIKI SOME LANDMARKS OF THE HISTORY OF THESSALONIKI

2 (1). Short review of History & Cultural heritage2 (1). Short review of History & Cultural heritage

CULTURAL SITES OF THESSALONIKICULTURAL SITES OF THESSALONIKI

• Arch of Galerius - 298-299 AD

• Rotunda - 306 AD

• Roman Forum

• Church of St. Demetrius - 4th Century

• Church of Agia Sophia - 8th Century

• White Tower - 16th century

• Number of archeological sites

2 (1). Short review of History & Cultural heritage2 (1). Short review of History & Cultural heritage

BEAUTY & SPIRITS NEIGHBORING THE CITY BEAUTY & SPIRITS NEIGHBORING THE CITY

•Pella -The residence of Alexander the great

•Naoussa - School of Aristotle

•Mount Olympus - Inspiration of Greek Mythology

•Mount Athos - "The Garden of the Virgin Mary“

•Meteora - monasteries built on the top of the cliffs

2 (1). Short review of History & Cultural heritage 2 (1). Short review of History & Cultural heritage

CITY FESTIVALSCITY FESTIVALS

• Thessaloniki International Film Festival– Film Festival– Thessaloniki Documentary Festival– Video Dance Festival– Other national festivals

• The Dimitria festival, after city's patron - St. Demetrius

(music, theatrical performances, dances, exhibitions and other)

• International Festival of Photography

• Jazz Festival

• Cultural Capital of Europe, 1997

2 (1). Short review of History & Cultural heritage 2 (1). Short review of History & Cultural heritage

2 (2). Stakeholders – Presence, attitudes & Networking2 (2). Stakeholders – Presence, attitudes & Networking

STAKEHOLDERS & OTHER DOTS OF TOURISM CLUSTERSTAKEHOLDERS & OTHER DOTS OF TOURISM CLUSTER

ACADEMIAACADEMIA

Alexander Technological Educational Institute (ATEI) of Thessaloniki

The Organization of Tourism Education and Training

- Second Tourism educator in Central Macedonia

- Institute of vocational training- Secondary and post secondary

education- School for tour guides - Carrier office- Member of international

organizations

- Main tourism educator institute in Central Macedonia- Strongest tertiary education

institute in the region- Undergraduate studies /Bachelors, Masters degree/ - Host of international students

exchange programs - Member of international

organizations- Main academic researcher in the

field of tourism

Department of Tourism Management

1983

1937

2 (2). Triple Helix – Presence, attitudes & Networking2 (2). Triple Helix – Presence, attitudes & Networking

2 (2). Triple Helix – Presence, attitudes & Networking2 (2). Triple Helix – Presence, attitudes & Networking

INDUSTRY - PRIVATE SECTORINDUSTRY - PRIVATE SECTOR

- Mainly for summer season

- Cultural product is additional

- insufficient usage of local

international events

LOCAL TOURISTIC PRODUCT

Presence of all main stakeholder

Large number of SMEsEasy to start / operate business

STRONG POINTS

Lack of leadership

Poor standards of servicesPoor use of Information Technologies

Weak Networking

Need for Tourism informationLittle market research

Shortage of resources

No Joint effort in productivity GrowthLow innovation capacity

Little need of outsourcing

WEAK POINTS

All essential Infrastructure in place

2. TOURISM CLUSTER of Thessaloniki - SWOT of Attitudes2. TOURISM CLUSTER of Thessaloniki - SWOT of Attitudes

ATTITUDES – INTERNAL FACTORS OF DEVELOPMENTATTITUDES – INTERNAL FACTORS OF DEVELOPMENT

2 (2). Triple helix– Presence, attitudes & Networking2 (2). Triple helix– Presence, attitudes & Networking

GOVERNMENTGOVERNMENT

Main focus - preservation of heritage & centralized promotion policy

• Weakness in

• Offer of local touristic product & services

• Support programs to develop regional culture-based product

• Leadership - little trust of local stakeholders

• Needs of improvement

• Quality of tourism promotion infrastructure

• Tourism Information centers

• Web space/ portal linking all available touristic resources

• Prints, publishing & etc.

• Standards and marks of excellence

• Tourism education

• Linkage of Industry and Academia to development policy

2. TOURISM CLUSTER of Thessaloniki – SWOT of Attitudes2. TOURISM CLUSTER of Thessaloniki – SWOT of Attitudes

ATTITUDES – GOVERNMENT SERVICESATTITUDES – GOVERNMENT SERVICES

2 (2). Triple helix – Presence, attitudes & Networking2 (2). Triple helix – Presence, attitudes & Networking

COMMUNITYCOMMUNITY

•Tourist friendly

− Supportive to tourists

− Good host

− Smile and foreign language

− Tourist itself /high local demand on touristic products/

• Tourist friendly Skills and knowledge

• Little participation in tourism development policy

• Need for Raising awareness of tourist needs

TOURISM CLUSTER IN THESSALONIKITOURISM CLUSTER IN THESSALONIKI

2(3). Diamond Model of Competition2(3). Diamond Model of Competition

Firm Strategy Structure & Rivalry• Big number of tourism SMEs

- Strong rivalry among them for local customers (strong personal relations, Price reduction)

-Little innovation capacity and need to grow productivity -Little resources and strength of competitiveness • Law market trend watch and outsourcing capacity•Few strong locally operating tourism companies

- Promoting locality as a destination, (partners abroad) -Rivalry with strong tourism companies abroad

Relating & Supporting Industries• Availability of all means of transportation •High traffic and bad parking system•Well developed food infrastructure•Fairly developed shopping places•International trade fair of Thessaloniki•All necessary tourist friendly services in place (communication, financial, medical, safety, etc.)

Demand conditions• High demand of European countries - Seaside resorts (Main fish) - Cultural-based tourism (additional)• Law demand on local international events •High local demand - Greek style of life •Central Macedonia – 2007 - 5th among Greek regions in hosting tourists - 7, 15 million tourists served - 60,423 bed-places in use and Occupancy 52,6 %

Factor Condition • Local resources - Huge Historical & Cultural heritage

(Religion, Philosophy, Mythology)-Fascinating environment• Festivals and celebrations•Tourist friendly population•Fair condition of infrastructure for hosting visitors•Need for upgrade of education system

Government • Focus on protection of national heritage •Centralized policy of promotion localities•Few support tools to grow productivity and innovation •Need of improvement of tourism info centers•Necessity of active involvement of all stakeholders in decision making process and promotion of regional opportunities

Diamond •Weak cooperation of similar businesses •Weak cooperation among industry, academia & government•No merge of the companies•High demand for promotion of the place & its tourism products •Lack of support tools for developing networking and leadership •Need for common strategy and continuity in promotion•Rise of awareness of local population

ChanceCrises of world economy – Time -To develop networking -To create common culture-based tourism strategy-To develop tourism product-To prepare for common promotion campaign

2(3). Diamond Model of Competition2(3). Diamond Model of Competition

SOME FIGURES ON DEMAND CONDITIONSOME FIGURES ON DEMAND CONDITION

Nights spent at hotels, similar establishments and camping in Central Makedonia in 2007

Nights spent at hotels, similar establishments and camping by Region in 2007 (mln.)

Foreigners first arriving in Central Macedonia Classified by means of transport in 2007

2. TOURISM CLUSTER of Thessaloniki – SWOT of Attitudes2. TOURISM CLUSTER of Thessaloniki – SWOT of Attitudes

ATTITUDES – NETWORKING - DIAMONDATTITUDES – NETWORKING - DIAMOND

2(4). Intelligence – Tool of Innovation & Networking2(4). Intelligence – Tool of Innovation & Networking

WEB-INTELLIGENCE – NETWORKING OPPORTUNITIESWEB-INTELLIGENCE – NETWORKING OPPORTUNITIES

Academy

Government

Community

IndustryOffer -Tourist Product

services

Promotion Campaign

Cultural Heritage

Visitor/Company

Customer

WEB PORTAL - Business Assistance & benefitWEB PORTAL - Business Assistance & benefit

2(4). Intelligence – Tool of Innovation & Networking2(4). Intelligence – Tool of Innovation & Networking

Industry Academia

Technology watch and R&D

Success stories

Networking opportunities

Watch & participation in a strategic planning

Opportunities of training/

consultancy

IMTs

CommunityGovernment

Access to spec. tourism info.

Technology watch and R&D

Watch & participation in

strategic planning


Offer of training/ consultancy

Career office

Opportunities to support

tourism development

Participation of stakeholders in

strategic planning

Access to stakeholders needs

ConsultancySuccess stories

Transference of Policy

Watch/ participation

Tourism skills


Access to spec tourism info & stakeholders

Networking & stakeholders feedback on

strategic planning

IMTs development

STEPS TOWARDS NETWORKINGSTEPS TOWARDS NETWORKING•

Defin

ing

avai

labl

e to

urism

stak

ehol

ders

and

pote

ntial

lead

er o

f net

wor

king

pro

cess

3. Recommendations & Conclusions 3. Recommendations & Conclusions

•Ri

se o

f aw

aren

ess o

f the

stak

ehol

ders

to

netw

ork

and

acce

ptan

ce o

f the

lead

er•

Mar

ket r

esea

rch

done

by

com

mon

effo

rt

•De

velo

pmen

t of c

ity, r

egio

nal t

ouris

m

prod

ucts

•Pr

epar

ation

of c

omm

on to

urism

dev

elop

men

t

stra

tegy

•Jo

int p

rom

otion

of t

he to

urism

pro

duct

at

loca

l & in

tern

ation

al ta

rget

mar

kets

•Se

rvic

e de

liver

y w

atch

and

feed

back

anal

yses

•U

pdat

e of

the

stra

tegy

, m

arke

t wat

ch,

supp

ort o

f pro

duct

dev

elop

men

t and

prom

otion

Round table, a dialogue

Preparation of common strategy

Implementation and update of Strategy

CONCLUSIONsCONCLUSIONs

High Potential of Developing Strong Tourism Cluster

Low Networking Capacity of Stakeholders

Need for Leadership and Community Involvement

Necessity of Preparation of Common Development Strategy

Importance of use of IT Intelligence

3. Recommendations & Conclusions3. Recommendations & Conclusions

ACKNOWLEDGEMENTSACKNOWLEDGEMENTS

I’d like to thank:

• The Erasmus Mundus Program

• ATEI of Thessaloniki ; Iv. Javakhishvili Tbilisi State

University & Aristotle University of Thessaloniki

• Dr. Nicos Komninos, Dr. Ioannis Karamanidis, Dr. Fotis

Kilipiris, Dr. Simon Gelashvili, Dr. Spyros Avdimiotis.

• And all who assisted me during the research on this thesis

Thank you for your attention Thank you for your attention

THESSALONIKI THESSALONIKI

Davit DarsavelidzeContact information:E-mail: [email protected]: +30 699 909 52 50 (Thessaloniki)

+995 99 43 88 97 (Tbilisi)

mailto:[email protected]