Cluster policy in the Veneto region

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1 Cluster policy in the Veneto region Marco Bettiol - Stefano Micelli Venice International University Nantes, Oct 5-6, 2009

2 A new industrial model? Italy as the cradle of a new industrial system Industrial districts for Flexible specialization Networks of small firms competing and cooperating in the same market Strong links with local culture

3 Small firms > 250 employees employees # 3,435 (0.1%) 3.3 Ml empl. (20%) # 21,922 (0.5%) 2.1 Ml empl. (12.5%) employees # 196,030 (4.5%) 3.4 Ml empl. (20.7%) < 10 employees # 4.2 Mln (94.9%) 7.9 Ml empl. (46.9%)

4 A map of italian industrial districts

5 The weight of italian districts 99 Local labour systems empl. 45% of italian export Employees in industrial sectors specialized dustrial districts employees Typical italian industries (fashion, forniture, food, mechanics) employees

6 Traditional industries: the 4 As Le 4 "A" del made in Italy # imprese # addetti % sull'occupazione totale in Italia Export (Mld )* % sull'export manifatturiero Import (Mld ) Export-Import (Mld ) Abbigliamento-moda ,20% 50,5 19,00% 21,8 28,7 Arredo-casa ,10% 17,8 6,70% 5,1 12,7 Automaz.-meccanica ,30% 68,6 25,80% 27,1 41,5 Agroalimentare ,10% 14 5,30% 17-3 Totale ,70% 150,9 56,80% 70,9 80 * Totale export nel 2001: 256 Mld Fonte: Fondazione Edison on Istat

7 The balance of trade Balance of trade Made in Italy Energy Other sectors

8 Local development policy in Italy Legge 317 del 5 ottobre 1991, art. 36 and Decreto Ministeriale del 21 aprile 1993 (Decreto Guarino) Financial support to industrial consortia in specified geographical area. Emphasis on statistical parameters to identify industrial clusters. Legge 140 dell'11 maggio 1999 Introduction of the broader concept of local development system

9 Industrial Federalism The reform of the Italian constitution in 2001 reorganized the institutional mandate as regards industrial policy. Since 2001, regions are in charge of local development policy: cluster management, human capital, innovation and internationalisation

10 Two alternative approaches Top down The Region identifies relevant local clusters on a statistical basis and launches a set of projects to support their development The district becomes is represented by a local committee with organs and an administrative structure Bottom Up The Region promotes lo aggregation of firms and institutions capable of defi joint development project The district has legal recognition but no stable administrative structure

11 iemonte mbardia iguria riuli Venezia Giulia - Veneto - Sicilia - Puglia oscana arche bruzzo azio ampania

12 The Veneto cluster law The Veneto Region has ruled districts with the regional law N.8, 4 Aprile 2003 Key principles: Local aggregation of firms (minimum 100) and institutions must promote a joint, clearly defined, development pact (Patto di Distretto) which will be valid for three years. The validity of the Pact is verified by Chambers of Commerce Subscribers of the development pact can apply with

13 Meta-districts In 2006, the law n.8/03 has been completed with the creation of a new institution: the meta-district. Key caracteristics: Regional dimension Focus on innovation and on early stage development districts (e.g. multimedia) Relevant role of research and technology transfer centers in the design of innovation

14 Venetian Districts In Veneto there are currently more tha districts and metadistricts. Some of them are overlapping the ser and the agricoltural sectors A complete list can found at:

15 Regional Funding by year

16 Measures to be funded Support to research activities, creation of data set and regular surveys. Research and development and technology transfer Creation and promotion of district brands District web portal design and implementation 6. Technical and test laborator 7. Participation to fairs a showrooms in Italy an abroad 8. ICT adoption and district software development 9. District infrastructures 10. District logistics

17 Regional Funding by measure

18 Cluster funding: an overview

19 A changing scenario

20 A dramatic shift Three simultanous shocks at the beginning of the decade: The introduction of Euro as the europen currency The end of trade barriers with the Far East The massive introduction of ICT in global value chains

21 A new generation of firms

22 Innovative features More International (International distribution channels, selective offshoring, connections with international research centers) More Explicit (less room for tacit forms of cooperation, intensive use of new technologies to coordinate global networks) More Immaterial (selling services with goods, selling stories with products)

23 innovation valley

24 Critical issues for industrial policy Districts are no more homogeneous cluster of firms leading firms are emerging and are changing their relationships with local firms Districts are on the move: leading firms are outsourcing globally (no only locally) and at the same time they are improving their presence in the global markets From local to global value chains: globalization is reshaping the way value is produced. There is a new

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