n° 7 - January 1998

The consideration held by the political world for the industrial clusters has made an important step forward. The following paragraph is an extract from a document which, last November 1st, concluded the meeting between the Government and the Cgil, Cisl and Uil unions on reform in the welfare state: ìwith law 266/í97 -the Bersani decree- measures are envisaged for the realisation in the industrial clusters of regional programs aimed at improving services. By the first half of 1988 the Government pledges to establish a round table with the interested parties to undertake an in-depth analysis of the industrial clusters in the wider context of local productive and company systems, with reform of all norms governing such being amongst its objectivesî.
This brief statement, inserted in a context where we would never have thought of looking, outlines a course which could become a turning point in the industrial politics of our country. Part of this course is fairly well defined, but a large part still remains vague. Among the more solid points are the date (June 1988) and the norms to reassess, which are practically limited to art. 36 of law 317/91 (together with the Ministerial Decree dated 21/4/93 which stated the controversial statistical parameters for recognition of the clusters) and, exclusively for depressed areas, to the ìprogram contractsî (Cipe dated 21/3/97).
The experience of the interventions actuated at the ë91 delegation came to little. Out of nine Regions which recognised the clusters, only three have launched programs; among other things the resources mobilised were modest (the Lombardy Region granted ITL 25 billion in contributions, Tuscany 2 and Piedmont 12) all of which have as yet not been utilised.
Effectively, more than a revision of what little there is, it would be better to start from scratch with all the laws governing this field, also because the Bassanini decrees (ìgranting of functions to local authoritiesî) shuffle all the cards already on the table with regard to local level economic development.
An undefined point in the agreement between Government and Unions concerns the ìinterested partiesî. Among these, the industrial clusters Club has all the right qualifications to take a leading role both on the level of analysis and contribution to defining a new set of standards.
With the prospect of this meeting with the Government, operators in the industrial clusters are now being called on to elaborate a unified, clear and wide reaching proposal. In recent years much has been discussed and written about the clusters themselves, but this has no weight when it comes to policies.
There isnít always unanimity among the same exponents of the clusters, and there are many knots to unravel before arriving at a unanimous project. Here we limit ourselves to mentioning only the most highly debated (the criteria for recognition of the clusters, the type of intervention considered necessary, the bodies that have to manage development programs and the delicate relations between Regions and Government) and to publicise the convention organised to discuss these themes for the 15th January in Rome (program on page ).

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Industrial clusters and technological innovation

(On November 27th, Paolo Sarti took part in a round table organised by Milan Polytechnic to present research on The diffusion of the paradigm of the flexible company. Policies and instruments for innovation and competitivity in Italian industry, by E. Bartezzaghi, S. Mariotti and G. Spina. The following paragraphs are some extracts of his discourse. Ed)

For those that have faith in the industrial clusters and their competitivity, the commitment of Milan Polytechnicís research to this unusual theme has come as a pleasant surprise. It has finally been recognised that innovation is a complex activity, not always confined to the ascetic interiors of laboratories but involving all aspects of industrial life. Even though the authors do express some perplexity regarding the capacity of industrial clusters to navigate within the ìnew paradigm of flexibilityî, in those sections dedicated to descriptions of innovative processes the essence of the clusterís strong points can be recognised.
The line of research chosen by the authors is promising. I personally am convinced that if the various schools of management work diligently on these themes linking techno-scientific know-how, organisational structure and the external context of the individual companies, they will render a great service to the clusters themselves as well as to the entire national economy.
Based on information obtained from the 1991 census, the Italian Statistics Institute has plotted a map which identifies 199 industrial clusters employing a total of 2.200.000 people, meaning 42% of the Italian manufacturing industryís workforce. The contribution of the industrial clusters to the social and economic performance of our country will never receive the recognition it so deserves; nevertheless I remind you all of the research undertaken by the University of Cattolica and Montedison which do effectively quantify the fundamental role played by the clusters in the countryís overall balance sheet.
I quote this research to underline how the various interventions aimed at stimulating the innovative capacity of the industrial are interventions which have general repercussions on practically the entire Italian industrial system, and how the onus of taking up the challenge of the Euro will fall in the most part on the clusterís small/medium industries.

Among the guidelines of industrial policy traced by the authors, I would like to insert a note of merit. Coherent with the subsidiary principle, we have to rethink the way in which the techno-scientific system has been working to support innovation in our country up until now.. I believe that the insignificant results achieved up until now in the attempt to bring small/medium industry and the academic and scientific world together are all too evident, as the research itself testifies.
The Cluster Clubís proposal is clear: offer incentives to the policies without directly strengthening supply ( (Cnr, Enea, Universities, etc..) but working predominantly on the side of demand: meaning that itís necessary to offer incentives, until the industrial clusters, making use of the instruments offered by the negotiated program, become the real protagonists of the project, deciding whether or not to invest in the research programs offered and whether or not it is the case to assign resources to universities, the CNR, Enea, etc.
The choice of becoming involved in the diffusion of innovative processes, thus influencing demand does present certain clear advantages:

it obliges research centres to obtain the resources they need from the market (a bit of competition does nobody any harm, even in these cases);

it concentrates intervention on projects for which the SMI are willing to bear a proportion of costs;

it permits pooling of the resources of all operators interested in innovation projects.

The Club welcomes a new innovation policy with great interest, designed to mobilise the best of the techno-scientific world in this direction, and on this point I fully agree with the authors when they emphasise that innovation, even for the clusters, is the ground on which we are fighting one of the most important battles for our future.

It is my impression that the clusters have all the right qualifications for taking on the challenges of this phase; that in the history of their development, many ingredients of the ìparadigm of the flexible companyî coming to the fore in recent years, are clearly visible. Indeed, the clusterís competitivity is based on a co-penetration of technical knowledge, , know how and production organisation.

As an entrepreneur and operator in the industrial clusters, I particularly appreciated the sections dedicated to the re-launch of innovation policies.

I donít personally share the authorís pessimism with regard to the stability of the clusters. I believe that the cluster reality today is far more articulate, and that with regard to innovation, we are witnessing situations that are pretty varied.
Nevertheless the consideration on the need for targeted interventions on infrastructure, training and the adoption of new technological applications are valid for all the clusters.

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The Club in Paris

(On the 19th of November, Enrico Botto Poala was invited to the 80th Congress of the Mayors of France, dedicated to the theme:: ìLíinternational: une nouvelle dimension pour líaction localeî(Internationalism - a new dimension for local action). The paragraphs that follow are a number of excerpts of his presentation. NdR)

About a year ago, on the invitation of the OCDE, I took part in a meeting at the French Senate here in Paris which discussed local systems of small industries and the industrial clusters of Italy and France. This current invitation gives me the opportunity to return to this theme, and I am happy to find that in France, too, the relationship between the economy and the local context is a theme which receives great attention..
The productive structure of our country is characterised by a heavy presence of small to medium sized companies. In Italy there are 68 companies per thousand inhabitants, compared to 35 in France, 37 in Germany and 46 in the United Kingdom.
These small industries are the true protagonists of our clusters. The specialised sectors concern personal or household goods (fashion products, furnishing, foodstuffs), and the equipment required for their production (specialised machinery).
The proximity of the many companies vying for the same markets fuels competitive pressure which ensures company efficiency and stimulates innovation, though relations between them does not stop simply at competition. The activity of the clusters also gives rise to a dense network of sub-supply relationships. The end producer delegates production of components or the execution of certain production phases to other companies. The division of the workload between companies permits cost reductions and allows for efficient management of cyclic market variations, thus guaranteeing elasticity for the entire productive system.

Many other advantages derive from this productive specialisation and the division of the workload which goes on at local level in the same sector, such as the training of qualified personnel, which ìinteriorisesî the culture of the cluster product. In these ìhomogenousî realities, local authorities, entrepreneurial organisations and services are also able to better interpret the needs of the companies.
This strong attention on local systems goes side by side an equally strong opening of the international front. It suffices to say that Italy holds 54% of the world market for ceramic tiles, 32% of jewellery, 31% of carpentry and ceramics machine tools, 30% of wool and silk fabrics, 29% of chairs, 28% of leather footwear, 27% of bags, 22% of frames for glasses and so on; all of which are products which can be found in our industrial clusters.

I am now speaking on behalf of the Italian Industrial Clusters Club, a network established in ë94 to favour the exchange of information and to give greater visibility to the clusters themselves. Thanks to this ìnetworkî weíve managed to develop the critical mass necessary to gain the attention of the media (maybe one of the reasons for my invitation to Paris) as well as that of the Italian political world. Given the fact that we are now moving in a European scenario, we have launched a program aimed at promoting an alliance between the various industrial clusters throughout the continent.
I would like to conclude with a proposal, and I feel that this is the right occasion to offer the Mayors here present, whose territories have the characteristics of industrial clusters, an invitation to assess the opportunity of promoting the constitution of a French Industrial Clusters Club.
We already know that France is the home of numerous important cluster realities, like for example: Lille, Roubaix-Turcoing, Mazamet for textiles; Oyonnax, Creteil and Saint-Claude for glasses; La Vallée de líArve for the mechanical sector; Cholet for footwear, Vimeau for taps and plumbing; Limoges for ceramics; Cannes and Antibes for perfumes; Thiers for cutlery; Besançon and Morteau for clocks.
In these very days, other representatives of our Club are holding meetings in Spain to discuss the constitution of a clusters club there, too.
This could be seen as the first step toward the realisation of a European Network of cluster Clubs, through which it could be possible even to influence Community Policy.

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A brand name for the Central Tuscany clusters

The clusterís emotional plus points

The Empoli and Valdelsa area is situated in the heart of Tuscany, between the provinces of Florence, Pisa and Siena. Here, in a radius of a few tens of kilometres, live 120,000 people, with over 13,500 active companies specialising in complementary sectors: leather clothing, waterproof clothing, footwear, ceramics, frame making and wine production.
The supply of these products, which often require the care of craftsmen, is mingled with significant tourist activity. Thanks to its appreciable museums (Vinci, Empoli, Montelupo) and to agricultural tourism, the area attracts a great number of visitors, above all in its centres like Montaione, Gambassi Terme, Montespertoli, Vinci and Certaldo
This combination reflects in the production of the area which, as a result of this superimposition of the environmental and architectonic context, artisan traditions and aesthetic sense, manage to offer truly emotive ìplusî points.

The area brand name

Up until recently, the products of the Empoli and Valdelsa were publicised by the individual companies, without recourse to their association with the territory itself. Recently a group of operators, united in various consortia, thought up the idea of coupling their production with some typical traits of the territory (like the internationally known association with Leonardo da Vinci) and to this end commissioned a company to invent a brand name for the area.
The project was promoted by Centrovetro (Empoli), the Ceramics Consortium (Montelupo), Emporium (Empoli) and Promomoda (Empoli), which established a non-profit making company specially for this purpose, called ìFORUMî. Its ìmissionî was to promote the development and qualification of local products through the organisation of events designed to strengthen the clusterís image on an international level.
The brand name is ìINGENIUSî, a name taken from the fusion of a number of distinctive elements of the Empoli and Valdelsa areas.
The concept is based on the geniality and knowledge of things in their simplicity, the harmony of thought and manuality.
By its sound ìin geniusî recalls the themes and values deeply rooted in the area over the centuries, such as the memory of Leonardo da Vinci and Pontormo.
According to Horatio ìgeniusî is he who dominates human nature and determines the destiny of things, the good and the bad outcome of human actions. Sallustius uses ìingenium lociî to indicate the spirit of place, intended as how to live with its harmony, seasons and rhythms, sensitivity to beauty and its influence on manís actions..
The ìIngeniusî brand aims to build a platform from which to promote local production and render it more easily recognisable through a communicational strategy acting on emotive values of which the common denominator are tradition, ideas, and beautiful.
The entire project, as often happens in these cases, is externally oriented (national and international markets) as well as internally (involving developing the awareness of local operators and mobilising resources for resolving the problem of the territoryís image) and consists of a series of events and activities, among which:

advertising campaigns; direct marketing action; management of relations with the specialised public; hospitality for delegations of leading foreign opinion leaders; the production of a newsletter;

the aggregation of the areaís various production sectors in promotional initiatives on major foreign markets;

the diffusion of multimedial promotional material presenting the various clusters and their links with the territory;

action to develop the awareness of economic operators, through concessions granted for use of the ìINGENIOUSî brand.

Through this initiative the Empoli and Valdelsa area is making decisive progress in a field which is felt in many other Italian industrial clusters, this being the association of territories with traditional production.
Up until now the operation has had a discrete level of success in the field of foodstuffs (wines, cheeses, hams....); a lot of research has been made into the industrial sectors, and some timid attempts have been made, though not always with the desired results. The experience of Empoli and Valdelsa, from this point of view, will certainly be useful for many other Italian clusters which still have not gained the renown they deserve.
The project has been realised utilising funds granted by the Tuscany Regional authority for interventions in the industrial clusters.

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The Carpi CITER

In recent years, for those working on the clusters theme, the CITER (Centre Informazione Tessile dellíEmilia Romagna- the Emiglio Romagna Textile Information Centre) represents an exemplary point of reference in the field of industrial policies.
The mission of the CITER, founded in 1980 as a result of a Regional initiative, consists of providing support for the process of innovation and adaptation to the new competitive scenario in which the small/medium sized textile companies of Emilia Romagna are currently operating.. Though the mission has net sectorial (textile/clothing) and Regional (Emilio Romagna) connotations, the CITER is frequently associated with the Carpi cluster, and for many stands out as a qualified model for positive and active cluster policies.
From a juridical standpoint, it is constituted as a consortium, with shares being held by the Regional Authorities (through the EVERT), category associations (crafts and industry), though chiefly by over 460 small/medium companies in the textile/clothing sector..
To this latter group, the CITER offers a wide range of services based on six major themes. The first is based of fashion trends. Twice yearly a number of experts in this field provide an orientation for the companies by presenting a preview of what are to be the new seasonís models, yarns, fibres, colours and weaves; this highly appreciated activity supporting companies as they develop their new collections also envisages direct participation in numerous sector expos and fairs, among which Pitti Filati.
A second group of services concerns market evolution; the CITER periodically invites entrepreneurs to highly targeted meetings where companies specialising in quantitative research into the influence of lifestyles on consumer trends in the various markets (Menswear, Women and childrenís clothing..), according to article type, average prices, channels.
The CITERís activity, which gave particular initial attention to services focusing on fashion, subsequently expanded to embrace the theme of company organisation, through the creation of support in the fields of technology, and production and quality planning, information technology and training. It took a truly pioneering role in the field of computer aided design (CAD), developing technical and design solutions with significant innovative content.
In support of the intermediate markets which, as we well know, characterises the entire Italian fashion system, it has also developed a database on the supply and demand for phase services.
All of the CITERís activities, performed by 20 employees assisted by numerous external collaborators, follows a well defined course aimed at the co-ordinated development of creative, commercial, technical, productive and managerial services for small/medium companies.
These activities are financed in the following way: one-third by the contribution paid by the companies themselves, one-third by a contribution of the Regional Authorities, with the final third being paid by its direct participation in training programs, research (like the currently underway Ministry for Scientific Research program for the textile industry, and assistance for new companies.

At ground level, the CITERís offer also includes intense sector oriented editorial activity (current managing director Paolo Rossi doesnít hesitate to underline that the CITER operates in the field of information distribution), aimed at providing ìimageî and ìcollective identityî for the Carpi cluster, economic animation activities, training (including numerous seminars on the theme of fibres), process technology, quality, balance sheet analysis for companies in the knitwear sector, as well as the promotion of sector (and thus, almost unconsciously) cluster innovation and research
Everything you need to know with regard to materials and production, with an eye to ìQualityî, is published in specific sector catalogues and even on CD-Roms.
The glue which binds these activities together is the CITERís headquarters, where sector entrepreneurs (not necessarily exclusively) from the Carpi cluster meet to exchange notes, and which has provided a basis for the collective development of recent years. The CITER experience has thus provided an excellent model for the many centres for small industry which are now springing up in both Italy and abroad.

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Changes in the Clubís management

The Club Meeting, held in Milan during April 1997, specifically declared its appreciation for the willingness of the Prato delegation to take the Presidency, and refer assignment of the charge to the Advisory Committee.
The Committee met last September in Montebelluna and assigned Paolo Sarti as the Clubís President, with the new secretary being Adrea Balestri..
In taking on this charge, Sarti thanked Enrico Botto Poala for his excellent management of the Club in its first three years of life, and invited all advisors to keep up this collective effort in attaining the Clubís objectives.
This ëchanging of the guardí, as contemplated by the Statute, the secretaryís office has now moved from Biella to Prato.

Following the various substitutions and supplements decided during the previous two meetings, the new Advisory Committee is thus composed:
Enrico Botto Poala from the Unione Industriale Biellese (Biella cluster Industrial Union); Paolo Terribile from the Belluno Chamber of Commerce; Giampietro Redaelli from the Centro Innovazione Lecco (Lecco Innovation Centre); Andrea Tomat, Museo dello Scarpone di Montebelluna (Montebelluna Ski-boot Museum); Virgilio Bugatti, Lumetel; Paolo Sarti from the Unione Industriale Pratese Prato cluster Industrial Union).
The technical committee includes: Arnaldo Cartotto (Biella), Aldo Durante (Montebelluna), Roberto De Martin (Belluno), Giancarlo Raffaldi (Lecco), Luciano Consolati (Lumezzane), Andrea Balestri (Prato).

Toward a European industrial clusters Club

Last November a delegation from the Club made first contact with the footwear cluster of Elche and the toy producing cluster of Ibi-Alcoy-Onil, in Spainís Valencia region

- Elche
Elche (15 km from Alicante) is the most important centre of a series smaller neighbouring communities (Elda, Petrel) forming the largest of Spainís footwear manufacturing clusters (and possibly Spainís single largest industrial cluster).
The community of Elche has a population of 180.000 and is home to 620 footwear manufacturing companies employing a total of 7,000 people. This cluster produces over one third of Spainís entire footwear production, and exports over half.
The meeting with exponents of the local Advisory Committee to the category associations (comprising footwear manufacturers and associated activities) took place in the Town Hall, and was also attended by development agencies, university lecturers and the local press. We visited a company, a specialised footwear services centre (Inescop) and the whole industrialised area. The local press covered the event broadly.

- Ibi, Onil, Alcoy
Ibi (44 km from Alicante) is the most important centre of a cluster specialising in the production of toys and plastic moulding. The population numbers 22.000 inhabitants and the toy sector alone includes over 100 companies employing 2,500 people. Onil and Alcoy are two neighbouring communities with similar characteristics. The cluster is dynamic (and certainly for toys one of Europeís most) and has great development prospects.
Here, too, the meeting with members of the Ibi and Onil local Council, entrepreneurs, local services operators and university lecturers took place in the Town Hall. We visited a specialised services centre for toy producers, which gave a very good impression. The local press published an article on the event with photos and news of the meeting.

- Travellerí notes
In both cases we illustrated the aims of the meetings, which were organised with the active collaboration of Prof. Antonia Saez Cala (from Madrid University).
After stressing the need to develop industrial policies on a territorial basis (clusters) and having described how the Club operates, we invited our hosts to act as a reference for developing a similar structure to our Club in Spain.
The invitation extended to establishing, with us and with our French counterparts, a technical secretariat with the task of organising an initial meeting in the spring (either in Spain or France) and subsequently to prepare a convention to be held in Brussels toward the end of the Autumn, and to include meetings with exponents of the European Commission to present a white paper on development and employment in the industrial clusters.
The Valencia region current benefits from many consistent national incentives, being objective number 1, but there are reasonable prospects that it will soon loose this privileged status, a fact which well may influence its decision to actively participate in the European network project.

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Convention

Industrial policies for the clusters

Rome, 15th January
The Industrial Clusters Club together with the Guglielmo Tagliacarne Institute in collaboration with the magazine Sviluppo Locale (local development), have organised a convention on the experience of industrial policies issued by the Regional Authorities following the ë91 delegation (art. 36 of law. 317) and on prospects relating to the Bassanini decree. The Convention will be held at Unioncamere (Piazza Sallustio, 21), and the program is to be as follows:

Opening (9:30)

• A welcome by Danilo Longhi, President of the Unioncamere

  Introduction:

• Luigi Pieraccioni, President of the Guglielmo Tagliacarne Institute

• Paolo Sarti, President of the industrial clusters Club

  Speeches by:

• Prof. Fabio Sforzi, Co-director of Local Development: The new map of the Italian industrial clusters

• Gaetano Esposito, Tagliacarne Institute: Company dynamics in the Italian industrial clusters

• Prof. Enzo Rullani, Venice University: Industrial policies for the clusters

  Round table on ìInstitutional reform and local developmentî:

• Prof. Domenico Cersosimo, Cosenza University

• Domenico Iannello, XXIII M.D., European Commission

• Luigi Mastrobuono, Unioncamere

• Prof. Francesco Merloni, Perugia University

• Gianpietro Redaelli, President of the Lecco Innovation Centre
  Moderatore: Luca Paolazzi, Il Sole 24 Ore

  Conclusions:

• Gilberto Pichetto Fratin, Councillor for Industry, Commerce and Crafts for the region of Piedmont

• Prof. Giacomo Becattini, Florence University

The clusters theme and policies for favouring local industrial development is followed with keen attention by numerous organisations and universities.

• LIUCC, Castellanza
  Castellanza Universityís Public Administration Research and Training Centre organised a workshop in collaboration with the London School of Economics on the theme: ìThe development of local economic systems. How to promote endogenous economic developmentî held in Castellanza on the 27th and 28th November.

• Irs, Milano
  The Irs (Institute for Social Research) seminar was held in Milan on the 13th November, on the theme ìEconomic and social research in support of local development policiesî. The meeting presented a number of case studies regarding local level intervention, with particular emphasis being given to economic characteristics appraisal, and evaluation of the impact of certain projects promoted by Regional Authorities, as well as to assessment of the effectiveness of training policies. The seminar was introduced by Giacomo Viaciago, Andrea Forti and Manuela Samek.

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News and events

The Clubís voice
The Club participated in the following events:

• Assocamerestero
  World Convention of Italian and Foreign Chambers of Commerce
  Bari, 3/5 November 1997

• The 80th congress of French Mayors
  Líinternational: une nouvelle dimension pour líaction locale
  Paris, , 19th November 1997

• Milan Polytechnic, Mip
  The Integration of managerial and technological innovation. Which policies for competitive Italian industry
  Milan, 27th November 1997

• Censis
  ìIndustrial clusters and local economic developmentî, VII edition of the Forum on local economies
  Rome, 12th December 1997

• Ski-boot museum ìThe footwear industry today. And tomorrow ?î
  Video conference with Montebelluna (TV), 20th December 1997

Publications

• Cnel Ceris-Cnr
  Innovation, small industry and industrial clusters
  3rd CNEL/Ceris-Cnr report, Rome 1997

• E. Bartezzaghi, S. Mariotti, G. Spina
  The diffusion of the paradigm of the flexible company. Policies and instruments for innovation and competitivity in Italian industry
  MIP Polytechnic broadsheets, Vol. 5, October 1997

• S. Brusco and S. Paba:
  ìA history of the Italian industrial clusters from the second world war to the ëninetiesî F. Barca , A history of Italian capitalism since the second world war
  Donzelli, Rome, 1997

• R. Grandinetti
  ìAn industrial policy proposal for the Friuli chair clusterî in Economia e società regionale, n. 2, 1997

• M.L. Di Felice, L. Sanna, G. Sapelli
  Industry in Northern Sardinia. From ìpioneersî to clusters: 1922-1997
  Editori Laterza, 1997

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