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A step beyond the standard texts The districts Club is one year old, and in its first months of activity has been dedicated to the preparation of the Club "paper" ("Industrial policies and local company systems" pages 4-5). Now that its scale and lay-out are defined, this train can finally accelerate on course toward its objective, underlined with great emphasis by the Club's President at the Carpi convention, of "boosting the districts a step beyond standard texts to make them active protagonists in the industrial policies of our country and the European Union". One year is a short space of time to draw-up a project that is totally new in many respects, and that is credible for a wide range of different operators (sector associations, chambers of commerce, service centres), and so it's a little early for taking stock, but not for presenting what the Club is preparing for the following months. In 1991, the Italian Parliament transferred power of intervention on the industrial districts to the Regions, through art. 36 of L. 317. Due to a series of substantial and formal problems, up until now little has effectively been done. Only Lombardy and Tuscany have adopted specific plans for their districts. During 1996, the Club is to open a debate on regional policies, organise meetings for the exchange of information regarding districts committees and their activities, and draw up a proposal with specific indications as to the type of intervention that is desired from the Regions. The Club also intends to do everything possible to get support for the districts from the mass media and institutions and, above all, from the European Community and OCSE. Another action front on which the Club will be involved regards the identity of the districts themselves. Their influence on the national economy doesn't get the recognition it deserves. To compensate this 'image deficit', the Club has decided to establish an award for theses and original research into the district's contribution to the creation of product flow, employment, export and our country's standard of living. Another reference point for Club activity is organisational. To reduce distances between districts and increase inter-district communications, the Club will soon 'navigate' on Internet, but connections between districts mustn't be limited to this. Conventions serve to attract attention. The Carpi convention, as well as giving the Club increased exposure, closed with a surprise. Convention work was carried out by means of a tele-conference connecting five districts : Belluno, Biella, Lecco, Pesaro and Prato. From a technical point of view, tele-conferences are nothing new, but from a practical standpoint this system demonstrated the possibility of putting operators from various districts in immediate contact, and we certainly hope that tele-conference facilities will soon be set up in all Italian districts. Conventions
The convention's works To present its manifesto on industrial policy, the districts Club held its convention on the 14th of November at the CITER. During his introduction, Club President Enrico Botto Poala presented the Club and its objectives. Over 60,000 companies operate in the Italian industrial districts, employing over 600,000 people. Together they produce 10% of the entire Italian GNP. This reality still hasn't received the recognition it deserves from the world of European, national and regional politics. The Club, configured as a network of 'soft' inter-district relations, aims to represent and protect the interests of this section of the national economy. As Mr. Botto Poala mentioned in his introduction, Club activities must become involved in the mainstream of this country's transformation process by demanding substantial changes in industrial policies, that must rapidly abandon practises of direct transfer and sparse contributions, and directly involve the districts in decisions that regard their future. Daniele Verdiani, from the EEC's GM III, admits that the Community's industrial policy machine is aimed more toward the needs of large scale rather than small to medium scale industry. In the light of the consistent economic success of the districts and the territorial and social stability created by their development, Verdiani suggests that the Club should contrast these distortions in European and national industrial policies with a good dose of courage and skilful planning, above all in the fields of training and internationalisation. Michele Ventura, representing Regional Co-ordination, also commented favourably on the Club manifesto, expressing his perplexity about certain legislation currently being developed by Parliament regarding reform in the Foreign Commerce Institute and Chamber of Commerce for Industry, Crafts and Agriculture. He maintains that these projects are contrary to the transfer of control desired by the Club, in the same way that this country's banking system pays little attention to the demands of local development. Maurizio Vaccaro, from the National Footwear Association, underlined the strong similarities between local and sectorial realities in the footwear industry, and invited the Club not to underestimate the role that sector organisations are able to play in favour of the districts. Arnaldo Bocca, director of the Belluno Association for Industry, urged the Club to make great efforts to gain recognition from the European Community. In his intervention from Belluno during the tele-conference, he pointed out that the behaviour of the Regions can't be limited to the need for autonomy and decentralisation of power. The Regions themselves must provide an example of openness and the capacity to develop initiatives in favour of local systems. The convention concluded with a question proposed by Censis General Secretary (and Cnel President) Giuseppe De Rita. If it is true that the districts are a major support for the country, and that the real economy (the developing economy) lies in the districts, then why haven't the districts had the success they desire regarding representation of their specific interests ? The answer to this interrogative can be found in the roots and evolution of the districts themselves. When Censis began to work on these local systems, the four ingredients that characterised such systems were:
These days, things have changed, and it's from this point - in De Rita's opinion - that the argument has to be taken on again. Once upon a time, small and medium industry could be recognised within their respective territories, but now they increasingly have extra-territorial strategies and references. The power of such small to medium industry is no longer limited to the territorial identity, and representatives of district entrepreneurs are no longer the President of the Chamber of Commerce, local savings bank or Industrial Union. The companies now require farther reaching networks to assist them in their international level trading and finance, because they need logistics, communications and distribution that go far beyond the district. According to De Rita, the four basic ingredients of the district economy (the SMI network, the sense of identity, the mutual alliance and the sector 'macro' company) are no longer sufficient to maintain bonds within the districts. Alliances have to be constructed in line with new necessities. Local promotion of technological exchange projects make little sense in a situation that sees companies requiring connections to wider reaching networks (that reach beyond the districts), using higher level services (leading advertising agencies, merchant banks), and operating directly with sectorial themes no longer predominantly territorial. Furthermore, to retain the entrepreneurial factor within the territory, the districts must be able to ensure high local living standards. In spite of its intention, Law
317/'91 hasn't been of great help in establishing a system of district
representation. For various reasons, a crowd of localistic representational
organisations has formed over recent years: territorial areas, target areas
1, 2 and 5b; Law 317, needing a form of certification that has effectively
side-tracked the districts. Indeed, representation doesn't stem from dispute
or demand, but rather from development programs and projects, from
agreements that create common ground on which resources and responsibilities
may be developed together. The road to self-sufficiency is no longer valid.
The districts have to ally themselves, finding the right ways of joining
forces to pilot their development. Recently "only the local systems have
managed to resist", having roots strong enough to present them as
protagonists of our economic system. De Rita concluded that it would be a
real crime if such an important segment of national life weren't able to be
justly represented. District profiles Basso Cusio (Novara) The Cusio territory is bounded to the North by the new province of Verbania-Intra, to the East beyond the Arona and Ticino districts by the province of Varese, to the West by the province of Vercelli, with most of its activity located to the south in the Novara area. The 1991 census shows six boroughs defined as "more specialised production zones" in the field of valves, taps and fittings, with a population of 15,050 (4.5% of the population of the new province of Novara) spread over an area of 47 square kilometres. A working population of around 7,585 and unemployment standing at 2.9% confirms the area's significant role in the economy and entrepreneurial dynamism. The territorial distribution of employment sees 0.7% of the population employed in agriculture, 25.5% in services and a hefty 73.8% employed in industry. The strategic role covered by industry is confirmed by the area's level of industrialisation. Values for the area in question (meaning the area where the valves, taps and fittings sector is concentrated) are between 50 and 60%, three times the provincial and regional average, both of which being 16%. In employment terms, the female component is particularly relevant, with 30% of employees being women. The Basso Cusio area is characterised by the almost exclusive presence of a specific section of the engineering sector: taps and fittings. This is subsequently divided into two principle groups: supply taps (defined as "chrome-plated" in commercial terminology), and stop or regulation valves (also defined as "yellow"). The first type are installed at piping extremities, whereas the second are installed at various points of plumbing systems for regulating or interrupting flow. The production in this area is concerned with both types of tap, and amounts to over one third of the entire national production. A peculiarity of this district is a pronounced "fragmentation" of the industrial structure into numerous small, even artisan companies. In practical terms, along side medium to large scale companies a capillary network of allied small companies has developed, many of which family businesses, that undertake one or more phases of the production cycle for larger companies. The district is also characterised by a high export level (65% of sales). The principle export markets are Europe, accounting for around 58%, in particular Germany (25%), France (20%) and ex-Eastern block countries (30%), with the United States absorbing approximately 35%. The Middle East is another significant foreign market, particularly for the valve producing sector. Enterprise and institutions in changing industrial districts Censis research with the
collaboration of the Guglielmo Tagliacarne Institute In this new journey around the Italian industrial districts, Censis in part brings together the research resulting from years of analysis of local systems, and in part opens up new areas for debate. On the whole, the districts really came into the light in the 1980's. Thanks also to the shake-up caused by the devaluation of the Lira, all industrial indicators (production, export, new company establishment and, to a slightly lesser degree, employment) show a decisive upturn. Companies have managed to hone their competitive machine, and districts horizons have broadened. Effectively, in district evolution, the notes of the music are still the same, what is changing though is the score. Their development in this first half of the '90's is marked by uncertainties that stand out in sharp contrast. Another not very reassuring contrast, as Censis researchers rigorously observe, is the educational and social profile of district entrepreneurs: medium to low level education, ageing, self-taught management models not well adapted to stimulating company consolidation and growth. An even more outstanding contrast is between the energy of the companies and the surrounding territorial context (the real "sore point"); territories are either bogged down or posses barely sufficient infrastructures. From an analytical point of view, the various district evolutionary trajectories (that are different not only in a sectorial, historical and dimensional sense, but now more than ever, as a result of differing entrepreneurial behaviour) can be understood, and brought back to a "district life cycle". To achieve this, research proposes re-arrangement articulated in three stages:
The 'Italian laboratory' is the right ground for testing the forecasting capacity of this theory, though the most original and stimulating ideas come from a generous chapter dedicated the social role played by entrepreneurs in their territorial context, and on the politico-institutional demands they make. Censis attempts to quantify what proportion of the entrepreneurs in a given district have an aptitude for general leadership. This exercise resulted in the 600 entrepreneurs being divided into five distinct groups. The first group includes the "sceptics" barricaded in their companies (26.4%); then come the "nostalgics" desiring more public protection (26.0%) and the "obliged to be disinterested" (13.8%) that have great experience of administrative life behind them, but are obliged to re-immerse themselves in to their companies (also due to the rapidity of the upturn). The "liberals" (21.6%) hope for a more modern, open market, decentralised and with fixed rules. In their opinion, entrepreneurs have responsibilities no different from any other citizen. The last, and smallest group in numerical terms (12.2%), is made up of entrepreneurs that, tired of delegating responsibility to political representation, proclaim a new ruling class, declaring themselves ready to place their abilities at the service of collective development. In this group, Censis identifies a shift in entrepreneur's attitudes towards social and political problems, recognising this as fundamental for the constitution of a leadership able to influence all aspects of district life. The districts that participated in this research were: Cantł (furniture), Castel Goffredo (hosiery), Arzignano (tanneries), Cittadella (mechanics), Langhirano (ham and salami), Mirandola (biomedical), S.Croce (tanneries), Prato (textiles), Pesaro (furniture), Cittą di Castello (paper), Pomezia (electronics, chemical and pharmaceutical) and Barletta (footwear). Club news The Club and district local authorities. In his introductory speech at the opening of the Club Convention (14th November), the Mayor of Carpi, Demos Malavasi, expressed his hope for the creation of a network of relations between Local Authorities and the industrial districts. Administrators and functionaries in district Local Authorities interested in exchanging ideas on development projects are invited to contact the mayor of Carpi (Corso Alberto Pio, 91, 41012, Carpi; tel. 059-649111 / fax 649200) or Antonio Lucchesi, deputy mayor of Prato (Piazza del Commune, 50047 Prato; tel.. 0574-616232 / fax 21736). This newsletter will give space to contacts between local authorities on request.
Club organs The Club President and other delegated members took part in the following conventions: - I.R.I.S. / "local development" in Prato. Socio-economic changes. Prato and comparative studies Artimino, Prato, 11-15th September
- OCSE / German Marshall Fund Study tour for American policy makers interested in Italian districts and local development 7-14th October
- Confindustria (Confederation of Italian Industry) General assembly of entrepreneurs Rimini, 28-29th October
- Udine University, Economics Faculty Industrial districts and the global economy: the case of Italy Udine, 15-16th December - The Cnel has launched a study and research program on the territorial system in Northern Italy. Intermediate results of this research are to be presented at a series of conferences. The first, dedicated to competitive factors and internationalisation policies, was held in Verona on the 6th of December. Numerous Club members took part.
Club annual assembly The Club annual assembly will be held on 22nd March 1996 at the Lecco Innovation Centre, Via allo Zucco, 6, Lecco
Publications (books, projects and documents regarding industrial districts and their development) - Iannuzzi, E. The district company: Adaptation and development policies. The tanning district of Solofra. Cedam, Padova, 1995. ITL. 30,000
- Confindustria in the Marches Vol. 1: Strategies for entrepreneurial development in the Marches (issued by the Italian statistics organisation) Vol. 2: Proposals from entrepreneurs - Sprint 4th report on the economic system of Prato (1994)
Projects Eco-districts. Environmental adaptation and innovation programs for the industrial districts. The project is designed to promote pilot activities (working manuals, software) on which environmental management and auditing policy may be modelled, at district level. References: Duccio Bianchi, the Italian environmental research institute, tel: 02-294066175
Copyright©1996 by Club dei Distretti Industriali
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