Silvia Sacchetti

Linking learning with governance in networks and clusters: key issues for analysis and policy

In this paper we analyse the relationship between governance and learning in clusters and networks. In particular, we see these two key elements as interdependent, suggesting that, under particular circumstances, such interdependence may drive clusters and networks towards a dynamic development trajectory. A pure ‘governance perspective’ makes the development of any locality dependent on the system of powers which exists within the locality or across the global value chain. In parallel, a pure ‘competence-based approach’ focuses mainly on the capabilities of actors to learn and undertake activities. In contrast, we open the prospects for an interdependent relation that may change the actual competences of actors as well as the governance settings and dynamics in networks and clusters. When supported by public policies, the learning process may have the potential to modify the governance environment. Simultaneously, the learning process is intrinsically influenced by economic power, which may seriously affect the development prospects of clusters and networks. This is why an intertwined consideration of both aspects is necessary to promote specific approaches to learning and to design appropriate policies. In this paper we offer two preliminary case studies to clarify some of these dynamics: the first taken from the computers cluster in Costa Rica and the second from an Italian bio-pharmaceutical firm and its production network. The first case study refers to the software cluster that was created from scratch in Costa Rica thanks to an enlightened government policy in coordination with new local enterprises and an important foreign direct investor; while the second reflects on the ability of an individual company to create a network of relationships with large transnational companies in order to acquire new competences without falling into a subordinate position with respect to its larger partners.

Economic Governance and the Evolution of Industrial Districts Under Globalization: The Case of Two Mature European Industrial Districts

For many mature European industrial districts, the present decade has been one of trying (and often failing) to meet the difficult challenges posed by the rising tide of globalization. The future of these districts in the new global economy has become a key issue for regional and local development policy, and, in this respect, it has sparked a renewed interest in economic governance. Economic governance is important in that it underpins a regions long-term economic development path. This article is a contribution to the study of the economic governance of industrial districts and the related policy debate. The article does so by specifically exploring the economic governance issue by considering the experiences and challenges currently facing two mature European industrial districts in the global economy.

The Organization of Production and its Publics: Mental Proximity, Market and Hierarchies

Abstract The paper introduces mental proximity as an ideal-type criterion for assessing the organization of production, and positions it as a benchmark alongside markets and hierarchies in a three-dimensional space. Following a Deweyan approach, the criterion is focused on democratic deliberation espoused by necessary values: the rejection of controlling influences, positive freedom, inclusion on equal terms, informed participation, the desire to reach a consensus, sympathy, mutual respect, reciprocity, and continuous learning. We also identify a community network as a complex of people who seek to relate to each other in accord with mental proximity, and discuss influences on their search.

Knowledge caps in industrial development

The recognition of the link between the international division of labour and knowledge diffusion has been somehow disregarded by the economics of innovation and by development and internationalisation theories. Each of these perspectives has, in turn, addressed a specific aspect of the problem: namely, the nature of knowledge and the conditions under which technological change occurs; the importance of human capital formation and educational policies for promoting development; and the role of knowledge assets for the internationalisation of production either to exploit technological advantages abroad or to benefit from localised knowledge in host countries. In this article, these angles are three pieces of the same picture, which are combined together in order to provide a perspective on how the knowledge incorporated in production impacts on the accumulation of localised knowledge. The paper addresses some of the limitations and effects of transnational corporations as a means to facilitate learning and the diffusion of knowledge in developing countries. It then links the results of this analysis to the phenomenon of geographical polarisation of knowledge-creation activities. Our aim is to provide a framework for understanding the direction of industrial development in the light of the international division of labour operated by transnationals. In particular, we focus on those aspects of production that are related to knowledge, its nature and evolution over time. Our contribution emphasises how production decisions influence the evolution of knowledge assets within firms and territories, and determine (sometimes irreversibly) the evolutionary trajectory of localities. Given the cumulative nature of learning and the close links that relate actors’ opportunities with their past experiences, we argue that the technological direction defined by transnationals might not have much to offer to developing countries or, worse, might activate a vicious circle that would hamper the capability of developing countries to discover and develop innovations of their own.

Creativity and socio‐economic development: space for the interests of publics

Emphasising power in strategic choice, we consider people in actual and potential publics kindling their imagination and ideas in order to shape new directions in the economies in which they have an interest. This paper proposes ‘public creativity forums’, spaces defined by relations aimed at free communication and based upon shared values, including openness. Artistic activities are highlighted as a viaticum for people’s creativity, hence for their potential significance in influencing development in any sector or region. The case of self‐styled Mutoids is presented following original ethnographic research. These prospects are positioned in an analysis of transnational corporations, uneven economic development, choices over globalisation and regional competitiveness.

The Social Value of Multi-stakeholder Co-operatives: The Case of the CEFF System in Italy

The scope of this chapter is to provide an illustration of how social co-operatives can consistently pursue their social mission whilst retaining economic sustainability. We rely on case study analysis of an Italian social co-operative. Since 1991 social co-operatives have been conceived in the Italian legislation as mutual-benefit entrepreneurial organisations with a social character. The social objective was nested into the mutualistic structure, while the multi-stakeholder governance and the accumulation of socialized assets made the social co-operative similar to more traditional non-profit forms.

Knowledge in the Development of Economies

This innovative book offers a critical perspective on the state of the current global economy, making sense of knowledge-related issues by critically assessing existing institutional choices, as well as pointing to new ways forward.

Creativity in Economic Development: Space in an Inferno

This innovative book offers a critical perspective on the state of the current global economy, making sense of knowledge-related issues by critically assessing existing institutional choices, as well as pointing to new ways forward.

Positioning Order, Disorder and Creativity in Research Choices on Local Development

This innovative book offers a critical perspective on the state of the current global economy, making sense of knowledge-related issues by critically assessing existing institutional choices, as well as pointing to new ways forward.

La natura e l'impatto dei network industriali di subfornitura

Current debate focuses on network structures and firm strategies. In this perspective, the analysis is concerned with allocative issues. This essay proposes a different interpretation. Starting from that theoretical framework, we emphasise the nature and the implications of different types of networks with respect to socio-economic development from a distributional point of view. Within this context, we develop the analysis of subcontracting as an analysis of governance in production by considering the attitudes of the actors involved, i.e. medium and small enterprises, and transnational corporations. The externalisation of activities by large transnationals, which characterises current corporate restructuring, is related to the search for greater flexibility, but also for greater power over governments, labour, and subcontractors. Differently, networks that are not directed by a large transantional could possibly reach, under particular conditions, important economies of scale or scope without breaking the links with localities. Our conclusion is that the impact of subcontracting networks varies enormously. An understanding of this is crucial not only to an understanding of experience in economies throughout the world but also to an understanding of future trends and possibilities. Not least, firms and public policy agencies currently looking to appreciate the role and significance of networking to their own success or to the success of the economies of which they are a part, need to understand the implications of different forms of subcontracting network and need to have some appreciation of the way those forms actually differ in practice.