INDUSTRIAL DISTRICTS AS LOCAL SYSTEMS OF INNOVATION

This essay examines the situation and the lines of development of industrial districts from the point of view of local systems of innovation. First of all, this article points out to the modernity factors of the district model – which are ascribable to the supply chain economy, to entrepreneurial dynamics and to the importance of geography as a competitive resource – through the analysis of recent contributions of economic literature that examined the emerging organizational models in knowledge economy. Secondly, the outcomes of recent research on leading companies of Italian industrial districts will be presented, looking at three particularly topics of ongoing changes: the process of international opening of the value chain, the technological conditions of competitive advantage, the relationship between strategies and economic performance. Finally, some considerations on the issue of policies will be developed. Such considerations underline the need to re-think the traditional models of local governance of development and suggest to look at the new external district economies, based on service economies, on much more considerable investments in training, technological and cultural activities and, finally, on more aware institutional actions with reference to the association of companies in innovation projects.Industrial districts, Innovation Systems, Entrepreneurship, Global Value Chain

The innovation system vs. cluster process: common contributive elements towards regional development

Recent approaches to the study of innovations enhance some similar aspects of the innovation process in knowledge-based economies: (i) the systemic and interrelated nature of innovation and (ii) its geographic and inter-economic activities density of networking. One perspective is linked to the innovation systems approach at the national, regional and local level. What we know so far is that the most specialized forms of knowledge are becoming a short lived resource, in face of the (increasingly) fast changes that are occurring in the global economy; it’s the ability to learn permanently and to adapt to this fast changing scenario that determines the innovative performance of firms, regions and countries. Another approach is to be found in the research on cluster development, where proximity and interrelated technical/technological linkage are the main features to take under consideration. Although these two approaches operate at slightly different spatial scale of analysis, they both allow the identification of a set of key factors that contribute to understand the way in which institutions and actors, considering the innovation system or the cluster process, participate in the innovation atmosphere and in the economic growth. Nevertheless, both approaches show the same limitation: they tend to focalise into the descriptive and analytical level, disregarding the explanatory level. Local and regional authorities are, mainly, interested in the process of cluster intensification in the local and regional economies context. This feature stress out one other controversy level: are the “hard” location factors (the concrete tangible location factors) more important than the “soft” location factors (qualitative, intangible factors) or vice-versa? This paper aims to explore the current knowledge about this process and to open some fields of future research.

Towards a framework for the evaluation of policies of cluster upgrading and innovation

In the current scenario, a large and growing number of policies for local development and cluster upgrading explicitly incorporate the idea of innovation as a systemic process, embedded in specific socio-cultural and institutional contexts and intermingled with international challenges, opportunities, and strategies. These policies bring new challenges to the activities of analysis and evaluation: despite the diffusion of a systemic approach both in innovation thinking and in innovation policies, a proper system-based framework for the analysis and evaluation of these policies is far from being achieved (Bellandi and Caloffi, 2010). Trying to advance our reflection on this field, we propose some exemplifications on a quite delimited set of contexts, i.e. those of industrial districts (Italian, in particular), characterized by SMEs clusters facing contemporary globalization challenges. Focusing on innovation policies aimed at supporting functional upgrading of districts and clusters soaked in changing international filières and value chains, the paper discusses the meaning of evaluation of industrial policies when a systemic perspective is considered. On such premises a couple of exemplifications are illustrate some features of appropriate evaluation methods. Finally, some methodological aspects concerning the design process of evaluation activities are discussed.Evaluation of policies; systemic approaches to evaluation; innovation and cluster policies; industrial districts

The Local Emergence and Global Diffusion of Research Technologies: An Exploration of Patterns of Network Formation

Grasping the fruits of "emerging technologies" is an objective of many government priority programs in a knowledge-based and globalizing economy. We use the publication records (in the Science Citation Index) of two emerging technologies to study the mechanisms of diffusion in the case of two innovation trajectories: small interference RNA (siRNA) and nano-crystalline solar cells (NCSC). Methods for analyzing and visualizing geographical and cognitive diffusion are specified as indicators of different dynamics. Geographical diffusion is illustrated with overlays to Google Maps; cognitive diffusion is mapped using an overlay to a map based on the ISI Subject Categories. The evolving geographical networks show both preferential attachment and small-world characteristics. The strength of preferential attachment decreases over time, while the network evolves into an oligopolistic control structure with small-world characteristics. The transition from disciplinary-oriented ("mode-1") to transfer-oriented ("mode-2") research is suggested as the crucial difference in explaining the different rates of diffusion between siRNA and NCSC

Innovative interventions in support of innovation networks. A complex system perspective to public innovation policy and private technology brokering

The linear model of innovation has been superseded by a variety of theoretical models that view the innovation process as systemic, complex, multi-level, multi-temporal, involving a plurality of heterogeneous economic agents. Accordingly, the emphasis of the policy discourse has shifted over time. It has gone from a focus on direct public funding of basic research as an engine of innovation, to the creation of markets for knowledge goods, to, eventually, the acknowledgement that knowledge transfer very often requires direct interactions among innovating actors. In most cases, these interventions attempt to facilitate the match between “demand” and “supply” of the knowledge needed to innovate. A complexity perspective calls for a different framing, one focused on the fostering of process characterized by multiple agency levels, multiple temporal scales, ontological uncertainty and emergent outcomes. The article explores what it means to design interventions in support of innovation processes inspired by a complex systems perspective. It does so by analyzing two different examples of coordinated interventions: an innovative public policy funding networks of innovating firms, and a private initiative supporting innovation in the mechanical engineering industry thanks to the set up of a technology broker. Relying on two unique datasets recording the interactions of the various organizations involved in these interventions, the article combines social network analysis and qualitative research in order to investigate the dynamics of the networks and the roles and actions of specific actors in fostering innovation processes. Building upon this comparative analysis, some general implications for the design of coordinated interventions supporting innovation in a complexity perspective are derived.Innovation policy; local development policies; regional development policies; evaluation management

Sources of Resilience in the Computer and Software Industries in France

French hardware manufacturers were by and large incapable not only of translating technological advances into industrial products but even of understanding the new opportunities these advances offered. While true up to a point, this approach, focused on the failure of the so-called ''national champion'' policy, is incapable of explaining why French providers of IT services have had considerable success both in their own domestic market and in the wider European market. The argument advanced is that a very active higher education policy and national research strategy has produced a supply of particularly valuable competences which feed the IT sectors. In addition, the previous mission-oriented policies encouraged the development of effective technological districts which now nurture a plethora of small, innovative IT firms.IT industry dynamics; France; high-skilled labour; SMEs

Clusters and Knowledge Local Buzz, Global Pipelines and the Process of Knowledge Creation

The paper is concerned with spatial clustering of economic activity and its relation to the spatiality of knowledge creation in various sorts of interactive learning processes. It questions the merit of the prevailing explanatory model where the realm of tacit knowledge transfer is confined to local milieus whereas codified knowledge may roam the globe almost frictionless. When doing so the paper highlights the conditions under which both tacit and codified knowledge can be exchanged locally and globally. A distinction is made between, on the one hand, the learning processes taking place among actors embedded in a community by just being there - dubbed buzz - and, on the other, the knowledge attained by investing in building channels of communication - called pipelines - to selected providers located outside the local milieu. It is argued, that the co-existence of high levels of buzz and many pipelines may provide firms located in outward looking and lively clusters with a string of particular advantages not available to outsiders. Finally, some prescriptive elements, stemming from the argument, are identified.knowledge creation, clusters, buzz, pipelines, absorptive capacity

Inter-Organizational Learning and Collective Memory in Small Firms Clusters: an Agent-Based Approach

Literature about Industrial Districts has largely emphasized the importance of both economic and social factors in determining the competitiveness of these particular firms\' clusters. For thirty years, the Industrial District productive and organizational model represented an alternative to the integrated model of fordist enterprise. Nowadays, the district model suffers from competitive gaps, largely due to the increase of competitive pressure of globalization. This work aims to analyze, through an agent-based simulation model, the influence of informal socio-cognitive coordination mechanisms on district\'s performances, in relation to different competitive scenarios. The agent-based simulation approach is particularly fit for this purpose as it is able to represent the Industrial District\'s complexity. Furthermore, it permits to develop dynamic analysis of district\'s performances according to different types of environment evolution. The results of this work question the widespread opinion that cooperative districts can answer to environmental changes more effectively that non-cooperative ones. In fact, the results of simulations show that, in the presence of turbulent scenarios, the best performer districts are those in which cooperation and competition, trust and opportunism balance out.Firm Networks, Collective Memory, Agent Based Models, Uncertainty

Innovation, generative relationships and scaffolding structures: implications of a complexity perspective to innovation for public and private interventions

The linear model of innovation has been superseded by a variety of theoretical models that view the innovation process as systemic, complex, multi-level, multi-temporal, involving a plurality of heterogeneous economic agents. Accordingly, the emphasis of the policy discourse has changed over time. The focus has shifted from the direct public funding of basic research as an engine of innovation, to the creation of markets for knowledge goods, to, eventually, the acknowledgement that knowledge transfer very often requires direct interactions among innovating actors. In most cases, policy interventions attempt to facilitate the match between “demand” and “supply” of the knowledge needed to innovate. A complexity perspective calls for a different framing, one focused on the fostering of processes characterized by multiple agency levels, multiple temporal scales, ontological uncertainty and emergent outcomes. This contribution explores what it means to design interventions in support of innovation processes inspired by a complex systems perspective. It does so by analyzing two examples of coordinated interventions: a public policy funding innovating networks (with SMEs, research centers and university), and a private initiative, promoted by a network of medium-sized mechanical engineering firms, that supports innovation by means of technology brokerage. Relying on two unique datasets recording the interactions of the organizations involved in these interventions, social network analysis and qualitative research are combined in order to investigate network dynamics and the roles of specific actors in fostering innovation processes. Then, some general implications for the design of coordinated interventions supporting innovation in a complexity perspective are drawn