CORDIS Archive

Newsletter on innovation from the European Commission's Enterprise DG

	INNOVATION IN ITALY
		Local specialities
		Italy has a long tradition of firms in a given region specialising in one field, but these industrial districts may now offer a model for the rest of Europe.

mong the needs identified by the European Commission's March Communication on Innovation policy(1) is that of strengthening the regional dimension of innovation in Europe. Recognising that smaller companies are anchored at the local level, the Commission aims to encourage regional authorities to develop measures to help them at that level.

It sees the creation of clusters - where a range of firms and research centres working in related fields with common goals benefit from shared infrastructure - as crucial in developing world-leading companies in Europe. The example picked out in the Communication is that of the industrial districts, common throughout the north of Italy, which illustrate the ability of European small companies to reach a position of global leadership.

"Some of the industrial districts date back to the Middle Ages, for example glass-making in Murano (near Venice), or textiles in Prato (near Florence), but others have only recently been created," says Florence Vidal, a French consultant with a long-standing research interest in the Italian industrial districts. "But we can see in many cases there has been a great capacity to renew and sustain industry in these areas." Today there are around 200 industrial districts in Italy, accounting for over 2 million jobs, or around two-fifths of all industrial employment.

"The model requires several companies - although individual entrepreneurs may be behind them - and a well-qualified workforce. Trust and solidarity are vital: participants need to abide by certain standards of conduct or they will be ostracised," Vidal explains. "It does not work in all industries, however, because it has to be possible to split up the tasks. So, for example, furniture-making or machinery production fits well, whereas chemical production is not suitable. Also, it is often the case that the people in the area prefer this structure to large companies."

The industrial districts structure has traditionally been found in northern and central Italy, but the Italian government has tried to encourage the creation of such clusters in the south too, as part of its efforts to develop the Mezzogiorno. Successful examples include furniture-making in Bari(2), cork in Sardinia, and tomato-sauce making in an area where tomatoes are widely grown. In Sicily, growers of oranges and olives found they were no longer competitive as fruit producers, but created new markets in growing ornamental plants.

Vidal was an adviser to a government project to support industrial districts in France, which saw many interesting proposals. Some 60 projects received support, but the momentum of this initiative has been lost with the change of government last year. "To transfer it, you have to understand the model well," says Vidal. "Entrepreneurial spirit is a prerequisite, and entrepreneurs have to see the value of working towards common goals. And public authorities need to leave freedom to operate to business."

• F. Vidal
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