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1. Industrial Clusters Development Policies. Dott. Luciano Consolati Section I. 1. Industrial Clusters. Description. Dott. Luciano Consolati – 09.2005 - Mexico. Why are clusters of interest?. Perché occuparsi dei distretti?.

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Industrial clusters development policies

1

Industrial Clusters Development Policies

Dott. Luciano Consolati

Section I


Dott luciano consolati 09 2005 mexico

1

Industrial Clusters

Description

Dott. Luciano Consolati – 09.2005 - Mexico


Perch occuparsi dei distretti

Why are clusters of interest?

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

Dott. Luciano Consolati – 09.2005 - Mexico


Industrial Clusters Introduction

“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”

Dott. Luciano Consolati – 09.2005 - Mexico


How is a cluster born

MKT

Dott. Luciano Consolati – 09.2005 - Mexico


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)

Dott. Luciano Consolati – 09.2005 - Mexico


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

Dott. Luciano Consolati – 09.2005 - Mexico


Method of Production 3

A local productive system can be interpreted as an area with a centre that creates

A vertically integrated productive cycle

LEADER COMPANIES

Dott. Luciano Consolati – 09.2005 - Mexico

Companies that operate in the final phases of production

Companies that operate in the first phases of production

sub-contractor of semi-finished products

sub-contractor of precision equipment

sub-contractor of workmanship

Assembly sub-contractor


Method of Production 4

“Decisive factors: work sharing

Outsourcing of surplus

Market Growth

  • Outsourcing of diseconomies

    and of phases not established

    in an optimal manner

Lack of balancing in productive processes

  • Production with

    decreasing unit costs

  • External purchasing of products

    at lower prices

Dott. Luciano Consolati – 09.2005 - Mexico

  • Geographic proximity

    between enterprises

    and well-established

    existing relations

  • Reduction of transaction costs

    and greater reliability


Method of Production 5

Advantages resulting from work division

  • 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)

Dott. Luciano Consolati – 09.2005 - Mexico

Higher Productivity Level


The Productive Cycle of “Sistema Lumezzane”

MKT

Raw Materials

Orders

Final Product

Leading Company

Stamp Construction

Mechanical Manufacturing

Dott. Luciano Consolati – 09.2005 - Mexico

Fusion

Thermic Treatments

Cleaning of Metals


Productive line of non-ferrous metals

Raw Materials:chipboard, scraps

Foundry Refinery

Taps/Fittings Valves

Door Handles Fastenings

Mechanical Manufacturing

Assembly

Dott. Luciano Consolati – 09.2005 - Mexico

Shearing of burrs, Piercing, Boring, etc

Fusion

(electric ovens)

Threads, section bars e aluminium and brass drafts

Fusion

pressing

Finished

Product

Cleaning Polishing,

Shining, Burnishing, etc

Burrs, Cylindrical

Billetts

Other internal workmanship (cutting to cold, etc)

Pressed piece

Degreasing


Productive line in Steel Transformation

From Outside the Area

Stamping to cold

Semifinished: plates, billetts,

steel sections

Preliminary detersion

Funneling

Pickling

Rinsing

Drying

Dott. Luciano Consolati – 09.2005 - Mexico

Cleaning

With milling machines,

emery , etc

Finished Product

Superficial finishing


The main distinctive charateristic
The Main Distinctive Charateristic

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.

Dott. Luciano Consolati – 09.2005 - Mexico


The industrial cluster model
The Industrial Cluster Model

Four groups of key factors:

  • Location and space

  • Social and cultural

  • Economics and organisation

  • Institutional

Dott. Luciano Consolati – 09.2005 - Mexico


Location and space factors
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

Dott. Luciano Consolati – 09.2005 - Mexico


Social and cultural factors
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

Dott. Luciano Consolati – 09.2005 - Mexico


Economic and organisational factors
Economic and Organisational Factors

  • 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-howexchange)

Dott. Luciano Consolati – 09.2005 - Mexico


Political and institutional factors
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

Dott. Luciano Consolati – 09.2005 - Mexico


Species of capital
Species of Capital

Creation and valorization processes and transformation of forms of capital are the base of a competitive advantage

ECONOMIC CAPITAL

SOCIAL CAPITAL

SYMBOLIC

CAPITAL

Dott. Luciano Consolati – 09.2005 - Mexico

INTELLECTUAL

CAPITAL

HUMAN

CAPITAL


MATERIAL

CAPITAL

Anatomy of a cluster

SOCIAL

CAPITAL

Accessibility

Labour market

Trasport

Value

Building area

Aptitude

Water purification

Faith/Confidence

TYPICAL

ACTIVITIES

SUPPLIERS

CLIENTS

Subcontracting

Research

Raw materials

Subcontracting

Production

Markets

Semi finished

Subcontracting

Marketing

Machinery

Dott. Luciano Consolati – 09.2005 - Mexico

COLLECTIVE SERVICES

PRIVATE SERVICES

Schools

Banks

Category associations

Trasports

Service centres

Agents

Consortia

Designers


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