n° 11 - July 1999

Regions, Minindustry and industrial clusters

The industrial clusters and their problems have not been given the central role they deserve in the policies of this nor the previous Government, partly because responsibility the matter has been transferred, maybe a little hurriedly, to the Regions. Nevertheless, the Industry Ministry has more than once demonstrated its interest in the clusters. It intervened with law 277/97 in an attempt to spur the Regions into action. It opened up an opportunity with the liberalisation of the electricity market. It acknowledged the new discipline for recognition of the clusters. In it's most recent action it operates as a reference point for the Regions: in a discrete but effective manner, calling on local authorities, category associations, Regions and clusters to take up the thread of clusters' policies from the point at which they'd become tangled.
The intervention of councillor Michele Ventura, responsible for inter-Regional co-ordination, highlighted the divisions in attitudes that are still obstructing new territorial development policies, and pointed an accusing finger at an incentives system that isn't capable of stimulating a truly broad based investment program. Bersani gave his assurance that this problem could be overcome with the Common Fund for Industry, provided that "the Regions have good ideas and enough courage to implement them". Let's take a look of the costs of this situation, that's still very much in the balance. The Regions which have not yet implemented policies (lead by Veneto and Emilia) do acknowledge the clusters, and all of them have already committed resources for local development for the year 2000. While awaiting some reflections on experiences already matured, the amount of resources mobilised is less important than the fact that the process has been set in motion. Along with their acknowledgement, "cluster committees" have to be established, seen as lightweight structures made up of sector operators entrusted with elaborating and evaluating the various development programs. There is probably a great deal of misunderstanding on the content of development policies.
It is not necessary to introduce another "regime" for company investment support; the general rules are sufficient for this. The real backbone of cluster policies has to be the strengthening of local development factors, industrial areas, telecommunications networks, water treatment plant, transport, training, territorial image and common services. Nobody in effect is demanding "funds" for the clusters, but rather instruments for the support of local development, independent of whether they are industrial clusters, areas of tourist interest or agricultural pole.
This is why it is also necessary to review the negotiated programming support structure, that is currently envisaged almost exclusively for target regions 1 and 2, which excludes 80% of the industrial clusters! The centrality of the Regional role being understood and accepted, it is nevertheless important to maintain certain actions fronts at central level; this particularly applies to technological innovation, as well as high level promotional activity and training. Instead of creating degree courses and tiny research centres in all the clusters, actions should be oriented toward developing a few centres of 'excellence' based on the logic of real industrial experience. All this demands a coherent national and regional policy structure, with the Regions committed to investing in local productive systems. The Club, as a network of people with a vast collective experience directed toward development of the clusters, is ready and willing to work with the Regions, and this is to be the subject of the convention planned for the end of October in Lecce.

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The annual meeting of the Industrial Clusters Club was held on the 3rd of May at headquarters of the National Institute for Foreign Trade in Milan. The days works were opened by Club President Paolo Sarti, who had some particular words to say about the innovations introduced in our organisation for cluster companies: electrical energy consortia, area environmental certification and the "Bersani 2" decree, the one which, as hoped, eliminates the constraints of the statistical parameters for identifying the clusters. "The meeting", noted Sarti, "is an opportunity to get together to review the common problems that companies within the clusters are up against. Worrying reports about the local situation are being received from all parts, and even if the competitiveness of the districts is still strong, the situation nevertheless demands special attention. Over the coming months the Club, along with all the organisations interested in local development, has to make a substantial contribution both in terms of understanding the situation and developing projects ".
In presenting the balance of a year's work, he observed that the Club, in general terms, had achieved more than satisfactory results in terms of visibility and representation, but the same could not be said for national policies in favour of the industrial clusters; "in reality", he added "the first positive results in terms of concrete benefits are effectively visible in the 1998 balance. The decree on electrical energy (D.L. 79/1999) offers companies the opportunity of grouping themselves together to become primary clients to purchase electricity on the open market. This is only one of the first targets, that nevertheless is significant enough to justify the resources that Club members have invested in the form of their subscriptions. Another highly satisfactory result is the collaboration that has developed with the Foreign Trade Institute. The CD dedicated to the clusters is a new approach, that takes the excellence of territorial systems and the attraction of the "made in Italy" concept as its main themes.
Commenting on the changes currently in progress regarding the cluster's reference framework for industrial policy, he went on to note: "Up until now our references were the Ministry of Industry and the European Union. These have now been shifted to the Regions where, except for a few cases, there seems to be little interest in the clusters and territorial development policies for small/medium companies. The onus of defining programs and obtaining resources is increasingly on the local level, so we have to boost the clusters' capacity for organisation, and give them an identity strong enough to allow them to take care of their own problems ". The President also touched on the Bersani decree and the concept of environmental certification for the clusters. The decree had been long awaited, and was welcomed by all present. As Sarti underlined, "the new definition distinguishes between local productive systems and industrial clusters. Along with the other requisites, a cluster has to have a speciality product. In reality, there is still a degree of ambiguity, but this can only increase the discretionary powers given to the Regions ".
In conclusion, he pointed out that "the acknowledgement of the European directive on environmental certification for the clusters (EU Directive 1836/93; Emas) is another instrument that the clusters can use to crystallise their collective identity ". In the discussions that followed, Luciano Consolati Lumezzane cluster) and Paolo Barzaghi (Brianza cluster) drew attention to area contracts. Barzaghi in particular underlined the importance of alliances with organisations with goals similar to those of the Club (category associations, chamber of commerce,......). At the end of the day, after approval of the final balance and budget, Sarti invited his colleagues in the clusters to start giving some thought to the changeover in the Club Presidency and management, due for the beginning of next year.
 

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"The Industrial Clusters: the Italian road to employment and development ", is a title that effectively sums up the content of this CD-ROM, produced jointly by the Institute for Foreign Trade and the Clusters Club, to draw attention to one of the most original phenomena of the Italian economic system. With just quick double-click, the CD opens with a lively sound track that accompanies the introductory "zoom in" from a satellite photo of Italy onto the main menu. The CD can be viewed in any one of three languages: Italian, English or Spanish. After selecting the language, the contents list offers a panorama on the clusters phenomena in four sections: The Italian industrial clusters, the Industrial Clusters Club, a close up on the Clusters and the Foreign Trade Institute. The presentation of the clusters and their characteristics is made through text captions that accompany images of the products, companies and many of the buildings that best represent the clusters themselves, ranging from short videos (by clicking on the "movie" menu option), to a number of analytical tables and a couple of animated maps that automatically light up as you point to them, to transport the viewer into the heart of the clusters. The Italian industrial clusters. The first section gives a broad introduction to the Italian industrial clusters phenomenon. The attraction of the clusters is the introductory chapter that analyses the combination of economic, organisational, historic and cultural factors that breath life into local small company systems, giving them the ability to adapt to a constantly evolving world market scenario. The next chapter (the clusters and Italian exports) analyses the contribution the clusters make to the country's balance of trade; indeed, it is estimated that over a third of Italian exports come from companies operating within the clusters and that these more than adequately offset the cost of Italian raw material and energy imports. Italy from the market standpoint pauses on the role of the industrial clusters in the development of Italy's image abroad, particularly in the fields of fashion and industrial design. The third chapter contains a datasheet on the clusters, with information on specialisation, company and employee numbers, turnover and exports. The bottom line of the datasheet clearly illustrates the significant overall dimensions of the cluster phenomenon.
The map allows the view identify clusters according to specialisation, through data gathered by the Italian national statistics institute: the different colours represent the various specialisation sectors: foodstuffs, textiles and apparel, furnishings, leather and leather goods, jewellery and musical products, mechanics and printing. The Industrial Clusters Club. The second section is dedicated to the Clusters Club. Navigating through this section is made easier by having the same menu structure as the first. The first item on the menu opens the Club presentation, with explanations of its aims, activities, management, addresses and other useful information. This section also gives estimates of the relative 'weight' of the various cluster members of the Club (that now number around thirty) on the national totals for each sector, in terms of employment, turnover and exports: the thirty member clusters (out of a total number of clusters estimated between 80 and 230) are estimated to contribute around 50% The movie section offers an outline of some of the factors that have contributed to their success: low employment levels, high female employment rates, the application of state of the art technology and a high level of historic continuity in terms of production, as demonstrated by the presence of characteristic industrial history museums in many of the clusters. The outline closes with the affirmation of the clusters' awareness that while being "Italy's window on the future", they are also "its biggest bet" Zoom on the clusters.
This is the section given over to in-depth analysis of the individual clusters. Navigating through the map of Italy gives access to text and images on the production, economies, history and traditions of the various individual clusters, as well as their artistic and gastronomic heritage. Addresses are given for the various associations, museums, local authorities and chambers of commerce present in each cluster, as well as a number of brief videos on certain clusters. The National Institute for Foreign Trade. The fourth section presents the activities of the ICE (Foreign Trade Institute) with descriptions of the specific services it offers Italian companies, such as 'market scouting' (trade fair organisation, market research, foreign market data sheets, seminar courses), as well as its more general services (analysis of the international economy and annual reports). Clicking on the various items gives access all the information and addresses one needs to make the most of the ICE's services.
This part also contains a particularly interesting interview with Prof. Fabrizio Onida, the Institute's President (just click on the movie icon). In the interview, Onida highlights the importance of the clusters, and the attention the Institute intends to focus on them to help establish them on the international market. In Onida's opinion, the clusters owe their success to their open attitude toward new technology, even if foreign, as well as to the quality of their production. In this sense, the ICE is geared toward offering support to the SMI in the clusters, as well as to attracting foreign investment in them.
 

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The Industrial Clusters Club took part in "Argentina & Italy: countries in motion ", a highly significant expo event held in Buenos Aires between the 10th and 16th of May. The event, that was organised by the National Institute for Foreign Trade, was in effect a great shop window for Italy, and the largest of its kind as yet opened by a foreign country in Argentina. It was also a kind of affective recognition for the over 12 million "Italo-Argentinians" resident in this particular corner of the South American continent.
This was the very first international event occasion at which the Industrial Clusters were present, representing Italy alongside the country's traditional exporting "champions" like Ferrari, Parmalat, the Prosciutto Consortia, Regions and category associations (Confindustria, Confartigianato). The Clusters phenomenon was presented with maps, documents, catalogues and a selection of products (yarns, textiles, glasses, taps, pots and pans, cutlery and furniture), all to great effect in terms of design.
Produce from the Clusters also dominated the presentations of various consortiums and Regions (in particular Veneto, Lombardy and Tuscany). Among the various events, a seminar was held on Wednesday the 12th of May, with the theme: "Industrial clusters: the Italian solution for employment and development". Following the introduction by Gioacchino Gabbuti, director general of the ICE (Foreign Trade Institute), contributions also came from Paolo Sarti, President of the Industrial Clusters Club, Umberto Colombo, ex Universities and Scientific Research Minister, as well as representatives from the north-eastern clusters, Tuscany, Lombardy and Piedmont.
As Paolo Sarti pointed out, "the idea of the industrial clusters is exactly what any central government or Region aspires to, that is to say, dynamic companies deeply rooted in their respective territories and highly active on the international market, with low unemployment rates and high standards of living ". After having presented the Club and its activities in the field of industrial policy-making and public relations, turning to the Argentineans present, he observed that "precisely as a result of the clusters' success, we often get requests for collaboration in assisting the formation of this type of industrial system in areas with unemployment problems, though the Club hasn't come to Buenos Aires with the secret of their success for the simple fact that there is neither a secret nor any magic formula".
Among other things, the President stressed that the clusters weren't at the event to vaunt their model for industrial development, but to present the excellence of 'made in Italy' products to the South American market. Indeed, in buying 'made in Italy' products, the world's consumers are in effect buying a representation of the Italian way of life, and of the 'Italianness' to be found in its clearest form precisely in production of the industrial clusters, that so well reflects the towns and boroughs of our Renaissance.
Concluding, he briefly paused on the much debated subject of the 'reproducibility' or 'transferability' of the clusters phenomenon to industrial systems of other countries: "We can't be certain", he commented, "whether the clusters system model for development could be reproduced in Argentina or anywhere else. A priori it certainly doesn't appear easy, but it is to be hoped that similar lines for development could take root in other parts of the world". This theme was taken up again by Professor Umberto Colombo. As he pointed out, "the factors behind the development of these industrial systems are extremely complex, and certainly not easy to export. Nevertheless the possibility of good medium term prospects certainly cannot be excluded.
After all, in the post war years the Italian economy was predominantly agricultural, and the success of the clusters managed to alter its entire structure. In Argentina's case though, this kind of development would certainly benefit from the fact that over fifty percent of the population is of Italian origin ". Colombo also warned companies in the clusters, both old an new, that although they had already accomplished a great deal to get where they are, they were now called on to lengthen their stride to keep pace with the rapid evolutions in new technology.
 

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The Omegna household products cluster (Cusio-Ossola) has reached the end of the drive it had during its developing years, and is now counting on technological innovation to regain competitiveness. There's very little that can be done in terms of prices, seeing as differences in costs (labour first and foremost) between it and its Far Eastern and Eastern European competitors are far too great.
And it can't rely on an upturn in demand for its products either; it now has to put all its resources into developing new projects and picking precise targets. The times of grand innovations in terms of both processes and products seem to be just a memory. Research has drifted away from the frontiers of technology; there isn't the same commitment as there used to be to projects with the potential to revitalise the industry, and the flow of innovation has been reduced to a trickle.
A number of the larger companies and external operators have made significant commitments to production process automation; others are banking on design and the reorganisation of sales networks, but in some cases, this has the effect of forcing innovation on the smaller companies in the cluster. The technological gap in the cluster as a whole is above all to be found in the various phases of production, and in particular in the final cleaning and polishing phase. In effect, these operations are still labour intensive and cut heavily into the final cost of the product. And while the catalogues of the leading companies have significant amounts of products realised in the widest range of materials, the district's main offer is still founded on traditional products in steel and aluminium. Apart from this, special mention has to be made of the cluster's study of form, always a fundamental factor in the success of household articles. The coffee machine by Bialetti and the pressure cooker by Lagostina are a real leap forward in this sense, and have carved a special niche on the world market thanks to the particular emphasis on aesthetics and form that these "classic" articles have always been given.
The first company to adopt this "design" approach was Alessi, and just a glance at their 1999 catalogue gives a clear idea of the importance that design has taken on in recent years: the wide range of products offered, that includes clocks, utensils for gardening and oral hygiene, artefacts for the office, trolleys and spice racks, is proof of how the company has gone way beyond the limits of kitchen utensils. Another marketing instrument that Alessi frequently applies is the concept of limited edition, "artistic" numbered articles. At the outset, other companies viewed Alessi's initiatives with a degree of scepticism, but then began to reconsider.
In 1993, Piazza created a line of multi-purpose containers and professional pans in collaboration with the Original Designers 6R5 studio in Milan; a few years earlier (1989) Lagostina began working with leading designers, and even Bialetti, while still producing the classic 'Moka' machine, began investing increasing resources in aesthetic innovation. Today, company policies in the sector are directed toward concentrating on a specific range of articles, while at production level a great deal of investment has been made to ensure safety and new product performance qualities (hygiene, diet, health).
Moreover, in recent years operators in the cluster have been working toward strengthening the local connective tissue, to enhance inter-company communications and bring them closer to the local population.
The involvement of the workforce is considered a fundamental condition for guaranteeing quality production, and for creating a favourable climate for the development of new companies. And it is precisely for this reason that a number of significant cluster level "governance" structures have arisen. The first is the Tecnoparco nearby Lake Maggiore, that is a centre for research and technological support. Much testing is performed by this structure, including wear tests on non-stick pans, hot and cold deformation testing and, for pressure cookers, all kinds of thermographic analysis for conformity to UNI 9616 standards.
On the other hand, the Omegna Forum represents the desire for a reciprocal exchange between the territory's vocation to tourism and industrial heritage. The promotion of the city's image and enterprise in this sense was inspired on experience already proven valid both in Italy (the Valeriani museum in Bologna) and abroad ( the "Technology and handicrafts museum in Hagen). The result is the Omegna "Local Industry" museum, situated in a building that also houses a congress centre and the "Forum Shop", a real 'shop window' on the district where locally produced articles can be purchased at extremely interesting prices. Alessandra Ressico

 

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THE COMPETITIVENESS INSTITUTE II ANNUAL CONFERENCE

VARESE, 10-12 NOVEMBER 1999

THE CHALLENGES OF MATURE AND EMERGING CLUSTERS

9,00 Follow-up of cluster reference visits: update on Italian clusters economic situation (Club dei Distretti, Cluster Competitività e Unione Industriali Varese)

11,30 Welcome sessions:
          - TCI President (Emiliano Duch)
          - Club dei Distretti President (Paolo Sarti )

12,00 Keynote address on conference structure (Michael J. Enright)

14,00 1^st Parallel sessions:
         a) Mature clusters:                      b)Emerging clusters:
         crisis and regeneration                 birth and generation

16,30 Report back session

17,30 Networking / open time

9,00 2^nd Parallel sessions
        a) The role of Governement             b) Success stories
        in cluster initiatives                           in cluster initiatives

11,00 3^rd Parallel sessions
          a) The role of private sector           b) Success stories
          in cluster initiatives                         in cluster initiatives

14,00 4^th Parallel sessions
          a) Research on                              b) Training on
          cluster initiatives                            cluster development

16,30 Brainstorming on The Competitiveness Institute initiatives

9,00 The Competitiveness Institute General Assembly

10,00 Keynote speaker from Joint Venture (Silicon Valley)

10,45 Next year conference presentation

11,45 Keynote speaker

12,30 Closing lunch and Board of Advisors meeting

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Marco Fortis (a cura di),
Pre-alpine clusters. Mechanical engineering, textiles, rubber and plastics
F. Angeli, Milano, 1999

The industrial clusters are the real 'matadors' of the made in Italy system, a composite system that includes the Italian fashion system, furnishing and household products, not to mention the Mediterranean foodstuffs industry, and that is demonstrated to be one of the principle driving forces of the entire Italian economy. Marco Fortis, lecturer in Industrial Economy at Milan's Cattolica University and director of Montedison's research office, is one of the closest observers of this phenomenon. He has for years provided us with highly original and precise cluster exports and energy consumption analysis. This new publication offers a detailed analysis of a number of Northern Italian clusters, situated around the Lakes, and in the pre- and central alpine territories, and in the precise style to which his readers are accustomed, reconstructs the characteristics of these systems in an effort to explain the factors behind their success. After describing the historical backgrounds of the clusters, Fortis gives an outline of the general industrial vocation of the three territories (Lakes, Pre-alps and Central Alps): textile and apparel, plastics, taps and valves. The analysis then goes into greater detail to isolate the various specialities of the individual provinces that make up the clusters; the various outlines are accompanied by analysis of export flows, and in some cases focuses on the relationships between large scale industry and industrial clusters. Fortis does not mask his sympathy for the kind of relationship in which large industry, aware of its role and responsibilities toward its customers, collaborates with small/medium industry, like in the case of the ladies hosiery cluster around Castel Goffredo. Significant investments by the multi-national Du Pont contributed to the success of many companies in the cluster, which have in turn become important clients, consuming significant quantities of the company's yarn. In the second half of the book, backed by meticulously compiled statistics, the author analyses a number of the more famous industrial clusters: Cusio-Valsesia (along with Andrea Clerici and Alberto Nodari), Lumezzane (with A. Nodari), Como (with A. Clerici), Castel Goffredo (with Giorgina Bassetti and A. Nodari) and the most recent fluoride valley that has risen up between Bergamo and Brescia (with Elena Giarda). A historic profile is offered of each cluster, along with descriptions of their characteristic traits. The book has summaries in German, English and French which, just like the author's other works, will certainly contribute to diffusing a knowledge of the industrial fabric of these Northern Italian clusters, and the phenomenon of the Italian industrial clusters in general.

 
Donato Lucev
The industrial clusters of Campania
The Institute of Statistics and Mathematics - Naples naval university, 1999, Discussion Papers, no. 16

This work by Donato Lucev, lecturer at the Naples Institute of Statistics and Mathematics, offers an original procedure to identifying the industrial clusters of the Campania Region. The argument is based on the affirmation that the application of the legislative parameters envisaged for identifying clusters (in practise the so-named 'Guarino' decree dated 21/4/1993) is unable to identify all of the industrial realities with cluster-type characteristics. Lucev's criticism is chiefly aimed at the fundamental parameter, meaning the confines of local employment systems. Analysed according to the old standards (the decree has been replaced in the meantime by new regulations) the industrial clusters present in Campania number just three; Solofra (tanning), Agerola (textile-apparel and foodstuffs) and San Marco dei Cavoti (apparel), whereas according to the Campania Region, there should be seven: Nocera Inferiore (foodstuffs), Calitri (textiles-apparel), Sant'Agata dei Cavoti (electric al machinery), Grumo Nevano (textiles-apparel, tanning) and San Giuseppe Vesuviano (apparel), in addition to Solofra and San Marco dei Cavoti. Lucev proposes a different definition of the industrial cluster as limited by the 1993 decree and, basing his logic on territorial units as opposed to local employment systems, draws a new map of the territory to include the clusters of Santa Maria a Vico (leather and tanning), Grumo Nevano, Mugnano di Napoli (adjacent to the former), San Giuseppe Vesuviano, Gragnano (that includes Agerola), Sorrento (woodworking and furniture), San Marco dei Cavoti, Calitri, Solofra, Nocerino-Sarnese (foodstuffs) and Eboli (foodstuffs). While the recently approved 'Bersani 2' decree has rendered a part of Lucev's argument superfluous, the map it draws of the Campania industrial clusters is nevertheless of great interest. What it now needs is some serious work to correlate census data with direct on-site research!

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