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Social Capital and Small Enterprise Networks: Lessons Learned from Policy Initiatives in Italy

Explore the impact of social capital on regional development and enterprise networks in Italy, focusing on policy measures, successful strategies, and the evolution from positive experiences to normative approaches.

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Social Capital and Small Enterprise Networks: Lessons Learned from Policy Initiatives in Italy

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  1. Social capital and upgradingofSmallenterprisenetworks: whathavewelearned? Seminario CoCap Porto Alegre 28 09 2012 Tito Bianchi Evaluation Unit Department of Development and Cohesion Italy

  2. INDEX • Social capital, regionaldevelopment and upgradingofenterprisenetworks • Italian policy measures and theirtrajectory • Whathavewelearnedfrom positive experiences

  3. Social Capital in social science • Measuresof social capital are beingassessed -> theirrelationshipswithdevelopmentproven • Indicatorsused are unsatisfactoryproxies; • Social network analyses are increasinglypopular -> assessintensityof relations, internalhierarchy, opennessofnetworks;

  4. Social capital and regionaldevelopment policy in Italy • Italianliterature on Industrial districtsof the 1980s-90s hasidentifiedidentity bonds and trust as an ingredient of localized small firmdevelopment. • Sociologicalliterature on (Putnam 1993) identifiescivicnessas an ingredient of regionaldevelopment Can cooperative attitude be inducedthrough policy intervention?

  5. From positive to normative • Districts, filières, firmcooperation, fromspontaneousphenomenabecomecategoriesof policy intervention Firms, associations, branchesofgovernment are awardedresources and benefits in exchangeforcommitmentto cooperate

  6. SeveralPolicy instrumentsthataim at inducing social capital in networksoffirmshavebeenactive in Italy • 1997 – 2004 Patti Territoriali • 2003 – 2010 Progetti Integrati Territoriali • 2005 – today Distretti Tecnologici • 2010 - today Reti d’Impresa … allattemptsatreproducing the collaborative conditionsthatmakegroups of firmscollectively more competitive

  7. financial incentives to a group of locally based and integrated projects designed by a coalition of local actors 230 Patti funded, after bidding process, in subsequent generations between 1997/8 and 2001 – total value of 5.5 Billion (current) Euro Patti Territoriali to promote local development in Italy • financial incentives awarded to a group of locally-based firms: integrated investment plan designed by a coalition of local actors • “Patto” consisted of a package of grants to firms’ investment and of (up to a max of 30%) infrastructure operations

  8. 1990- TerritorialPacts for industrial development

  9. Patti Territorialicoverageof the Italianterritory

  10. Grado di copertura territoriale

  11. Grado di copertura territoriale

  12. Grado di copertura territoriale

  13. Grado di copertura territoriale

  14. 2000-2006 EU regional development Plan introduced in Italy…. ProgettiIntegratiTerritoriali “Composite project for the development of an area, which includes a set of different operations that all contribute, in interaction with each other, to a common development strategy, devised by local actors in response to concrete needs and opportunities.”

  15. ITP distribution by Italian Region, and incidence on total EU Regional Funds available

  16. THEMATIC MAP OF ITPs: SECTOR FOCUS OF CORE OBJECTIVES

  17. A new generation of policy toolsdoesnot award incentivesdirectly to firms • Lighter policy tools start by identifying-legitimizing an institution • «State-recognized» institutionsactasintermediaries of different policy incentives, national and regional

  18. Distretti Tecnologici • GOALS • To induce collaborationwithin a public-private network of firms, regionaladministrations and research centers • To facilitate che application and valorization of results of scientificresearch • Developregionalinnovationsystemspromotingregionalspecialization

  19. Distretti Tecnologici • Refer to a specificregional area • Have a sectoral focus • are managed by a ltd. Company: consortium • Havealsoproliferatedwithmanysectoralduplicates in differentregions

  20. I 34 distretti tecnologici Edilizia sostenibile (Trento), Edilizia sostenibile (Bolzano) ict, materiali avanzati, Biotecnologie, agroalimentare biomedicina molecolare Navale e nautico nanotech ict - torino wireless hi-mech - alta tecnologia meccanica Tecnologie marine Qualità della vita e sicurezza nell’abitare Sistemi intelligenti integrati Materiali speciali metallurgici ict & security innovazione sicurezza e qualità degli alimenti innovazione agroindustriale aerospazio e difesa agroalimentare bioscienze meccatronica Beni culturali high-tech Tecnologie per la tutela Rischi idrogeologici ingegneria dei materiali polimerici e compositi e strutture energia Biomedicina e tecnologie della salute Logistica della trasformazione logistica e trasformazione restauro dei beni culturali agrobio e pesca eco-compatibile micro e nanosistemi Energia petrolchimica e ambiente tecnologico trasporti navali commerciali e da diporto

  21. Recent Policy - Reti d’impresa / Contratto di rete • National business unionrequested more simple and inexpensiveformsofcollaborationforfirmstopursueactivitiestogether • L.122/2010 introducedenterprisenetworksestablishedthrough a contract • Firmssign “Contratti di rete” to take reciprocalcommitments and sayingwhodoeswhat; • Public authoritiesrecognize the validityofthis agreement whenthey award benefitsofdifferentkinds

  22. In July 2012 ,412 Contratti di rete could be counted in Italy

  23. Sector Distribution and size of Contratti di Rete

  24. Summing up: Policy Trajectoryovertime • Policy evolves: • frompromoting more formalizedto “lighter” formsofcollaboration • fromclearlydelimitedterritorialareas, tonon-spatialfirmnetworks • New emphasisresearch and developmentactivities; • Timehorizonofbecomeslessclearlydelimited, and the activities more open-flexible

  25. Whathavewelearnedabout producer groups-coalitions? • Withinspecificterritories, supposedlyendowedwithsamelevelof social capital, differentgroups of agents can establishdifferentlevels/forms of cooperation; • Economic agents can establish cooperative arrangements or institutions with anti-developmentresults • the degreeofopennesstoexternalmarkets and knowledgethrough«developmentalintermediaries» and otherexternalsupportersiskey

  26. Whathavewelearnedabout producer groups?Findings more specific to Agri-Food-Processing • Controlling the entireagriculture-processingchainisuseful to promote and establishproductquality (wine, cheese) • Leveragelead-farmerswhopossessexternalcontacts: localsmallfirmslack the widerperspectivetoperceive the possiblevalueoflocalproducts on externalmarkets--> oftenbenefitsextendtosmallfirms; • An export orientedstrategyhastobegradual: reputationforproductqualityhastobeestablished first locally.

  27. Whatwehavelearned on the effectiveness of policiespromotingproductivecoalitions-groups • Repeated policy experience of firmcoalitionsstrengthens trust through positive expectations • When public resources are at stake, formalcoalitions of producers can be developmental or rent-seeking • The leader roleswithin «Recognized» or formalized producer groupshas to be contendible

  28. Obrigado / ThankYou / Grazie • tito.bianchi@tesoro.it

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