INSTITUTE OF INNOVATION AND KNOWLEDGE MANAGEMENT

1. Discussing the Concepts of Cluster and Industrial District Javi Ortega-Colomer In collaboration with Xavier Molina-Morales Helsinki – February 9th 2010 INSTITUTE OF INNOVATION AND KNOWLEDGE MANAGEMENT

2. Presentation Outline • Introduction • Origin and Definition of Both Concepts • Open Questions

3. Introduction • The Regional Dimension • Competing and Overlapping “Neologisms” “Industrial District” & “Cluster” among others: ‘new industrial spaces’, ‘territorial production complexes’, ‘creative regions’, ‘neo- Marshallian nodes’, ‘regional innovation milieux’, ‘network regions’, and ‘learning regions’, etc. ---------------------------------------------------- • Indiscriminate Use? Because of the Editor’s Preferences? • “To Be Vague or Not To Be Vague?” • Fuzzy concepts, trans-discursive terms, neologisms, fashion labels • Unit of analysis? • “Individual Firm”, “Environment” or a Combination of both • Some Attempts to Clarify This Confusion

4. Origin of the “Industrial District” concept • Agglomeration of Industries • Factory System or Network of SMEs? • External Economies Analysis • Economies of Specialization • Economies of Labour Pooling • and Knowledge Spillovers • A Second-Reading of Marshall’s Writings made by Becattini and his colleagues

5. Definition of the “Industrial District” concept A socio-territorial entity which is characterized by the active presence of both a community of people and a population of firms in one naturally and historically bounded area. In the district, unlike in other environments, such as manufacturing towns, community and firms tend to merge. (Becattini, 1990: 38) • Community + SMEs + Institutions = Indivisible Parts of the Analysis • Core Industries + Related Industries + Machinery and Tools • The Sense of Belonging = Industry + Territory + Culture + Tradition + History • Cooperation and Competition • “Brand Image”: Made in Italy • Traditional Industries (blurred lines between low-, medium- and high-tech)

6. Origin of the “Cluster” concept • Theory of Competitiveness Geographic Dimension (included later, in 1998) Activity Dimension Business Environment Dimension Innovation = Competitiveness = Productivity = Quality of the Local Business Environment = Infrastructure, Education and Legal System • Comparative Analysis selecting countries (Japan, USA, Germany), sectors and firms to build successful cases and analyze the sources of innovation/competitiveness • Porter’s Diamond Cluster ~ Related and Supporting Industries • Strategic Management Perspective

7. Definition of the “Cluster” concept A cluster is a geographically proximate group of interconnected companies and associated institutions in a particular field, linked by commonalities and complementarities. The geographic scope of a cluster can be a single city or state or a country or even a network of neighbouring countries. (Porter, 1998: 199). • - Firms and Institutions • - Technology, Product and Market + (Territory from a Global Perspective) • Delimitation: relationships of complementarity • Cooperation and Competition • Including all industries: manufacturing and services • Wide Applicability: individual firm, cities, regions or even countries • Strategic Management perspective There is no model for clusters, but a multitude of configurations reflecting the particular circumstances of a location and a set of industries (Porter, 2009: 174)

8. Principal participants in the conceptual debate UK – “The (so-called) Father of Economics” Marshall (1890,1920) Becattini (1989) Porter (1998, 2009) Martin & Sunley (2003) Benneworth & Henry (2004) Lazzeretti (2006) Professor Emeritus in Political Economy ~ Firenze U. USA ~ Economist at Harvard U. and consultant at Monitor http://www.monitorgroup.com.cn/en/idea/leaders/leaders10.asp UK ~ Geographers – Cambridge U. & Edinburgh U. UK ~ CURDS – University of New Castle Management Studies ~ Firenze U.

9. Which are their main differences? • Differences in… • Rhetorical Styles • Sources of Confusedness (in different ways) • Audiences and Interests (policy/academic) • Methodologies • Dynamics: starting point, stages, firms ownership. • Types of Proximity: geographical, cognitive and relational • Relationships between employers and employees

10. Why have these concepts become “trans-discursive”? …because of their use in different realms Research Policy Trans-discursive terms Consultancy Own elaboration based on Miettinen (2002)??

11. What remains unresolved? • Unit of Analysis: Firm, Environment or a Combination of Both • The Normative Character of the Terms • Different Types of Proximity? • Can we separate the ideological debate from the conceptual one? • The role of institutions

12. Discussion • Does it make sense to define a concept exhaustively or is it better to do so in a vaguer way to take advantage of a wider applicability? • Who can really profit from this intellectual attempt? • To what extent is it worth extending a conceptual debate like the above?

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