SMEs
KEYNOTE SPEECHES – THE ROLE OF THE
SMEs: OPPORTUNITIES AND CHALLENGES
EU COHESION POLICY SUPPORTS THE
Prof. Patrizio Bianchi
University of Ferrara, 1391 and
Regione Emilia – Romagna Government
Barcelona, 13 march 2014
Patrizio Bianchi
Full professor of Applied Economics
Bologna University 1990 -1997
Ferrara University, 1998 – 2004 Dean Faculty of
Economics; 2004 – 2010 Rector
Region Emilia Romagna, 2010 – 2015 Minister of
Eduication and Labour
Recenti Publications:
-High Technology, Productivity and Networks, (P.Bianchi,M.D.Parrilli,
R.Sugden eds.), Palgrave Pu., London, pp.1-254, 2008
-International Handbook on Industrial Policy (P.Bianchi and S.Labory
eds.), II edition, 2008-Le nuove politiche industriali dell’Unione Europea,
(con S.Labory), Il Mulino, pp. 1 – 243, Bologna, 2009
-Le politiche industriali alla prova del futuro (P.Bianchi and C.Pozzi eds.),
Bologna, Il Mulino, 2010.
-Industrial Policies after the Crisis. Seizing the Future, (with S.Labory),
E.Elgar, Cheltenham, pp. 1 -150, 2011
-La rincorsa frenata. L’industria italiana dall’unità nazionale alla crisi
globale. Nuova edizione. Il Mulino, Bologna, pp. 1 -346, 2013
• Globalization and the reinassance of manufacturing
• A taxonomy for SMEs
I
P
E
• A new approach to industrial policy
T
• The policy experience of ER
• Final remarks: risks and opportunities for European SMEs
Real GDP Growth (annual % change),
1980 - 2014
10
8
6
4
2
0
1980
1985
1990
1995
2000
2005
2010
2015
-2
-4
-6
Advanced economies
Emerging and developing economies
World
The world crisis is not only the dramatic effect of the financial
collapse, but it is the structural readjustment after the end of Bilateral
Equilibrium and starting of Globalisation
Adam Smith
• “As it is the power of exchanging that gives
occasion to the division of labour, so the
extent of this division must always be limited
by the extent of that power, or, in other
words, by the extent of the market” (WN, I,3,
p.40)
“The greatest
improvement in the
productive powers of
labour, and the greater
part of the skill, dextery,
and judgement, …seem
to have been the effects
of the division of labour”
(WN, I, I, p.13)
The Wealth of Nations, today
Changes in the Extent of the market
require changes in Organization of
production
A Reinassance of
Manufacturing, because
Manufacture still drives innovation,
export and growth
Manufacture today and in the future
is the capacity to networking
different, specialized, complementary
assets, technologies and
competences
Division of labour: the organization of production
Mass production
capital
labour
Source s
primary
intermediate
Final transf.
distribution
Raw materials
Differentiated production
K
D1
L
S
P
I1
F1
T
I2
F2
D
2
DIFFERENT
MODELS OF PRODUCTION ORGANIZATION
Fordist
S–P–I–F–D
------------------------S – P – I – F1
Flexible
F2 - D
F3
---------------------------
District
S- P - I - F -D
P–I -F/
+++++++++++++++
Closed filiere
S--------------D
P/ I/ F/
Open filiere
S /P/I/F/ - D
World-wide industrial reorganization:
-Delocalization of specific production from a
country to another country
-World-wide unbundling of the entire production
cycle
- De-linking of service and manufacturing steps
the present attention to Manufacturing
Reinassance is the evidence that
De-linking manufacturing and service steps of
production involves the risk of:
- loosing the control of production cycle
- loosing capabilities to transform innovation
into production
- loosing the capacity to accumulate knowledge
and competences of production
CRISIS:
Countries reacted differently to the change in the
extent of the market determined by globalization
140
120
100
80
AV/N
60
CL/N
40
140
20
120
0
100
SW
80
UK
GE
SC
FR
BNL
IT
AV/N
60
cl/N
R&S, Multinationals: financial aggregates,
376 companies, milan 2012
40
20
0
US
EU
RW
RA
Oecd technology intensity based on % breakdown of net sales
EU
ITA
GE
FR
HT
SC
MHT
LMT
SW
LT
BNL
UK
0
20
40
60
80
100
120
R&S, Multinationals: financial aggregates,
376 companies, milan 2012
And differently invested in Human capital
Public expenditure on education 2010 as
% total exp. And as %GDP
18
16
16.4
15.7
14
15.3
13.2
13.1
13
11.5
12
11.3
12.3
10.8
10.5
10.4
10
8
6
9
7.3
8.9
7.3
5.8
5.8
5.6
5.6
5.5
5.5
4
2
0
Series1
Series2
5.1
5.1
5
5
4.7
3.8
And in research
GERD OECD, oct 2012
450000
400000
350000
300000
250000
Series1
200000
150000
100000
50000
0
Usa
China
Jap
Ger
Fra
UK
Ita
Gerd oecd in mil. dollar current
Europe can win the
present global challenge
only involving the
human, technological,
productive capacities of
all European SMEs
The Wealth of Nations,
skills, dextery and judgements
The word “SME” refers to very different kinds of
economic actors, like
Rural family activities
High tech specialties producers
Service providers
Component producers inside a local network
Subcontractors of multinationals
Industrial efficiency stems from
• Specialization of
individual activity
• Complementarity of
collective action
A taxonomy based on
Using 2 variables
• x = complementarity
• y = specialization
• We have 4 different groups of companies
requiring different policy approaches
A taxonomy based on
Using 2 variables
• x = complementarity
• y = specialization
• We have 4 different groups of companies
requiring different policy approaches
• A .low spec., low compl. (surviving companies)
• B. low spec., high compl. (local network)
• C. high spec., low compl. (speciality
subcontractor)
• D. high spec., high compl. (dynamic networks)
specialization
C. high spec., low
compl. (speciality
subcontractor
A .low spec., low
compl. (surviving
companies
D. high spec., high
compl. (dynamic
networks)
B. low spec., high
compl. (local
network
complementarity
Different strategies
from low spec/low compl.
to high spec / high compl.
spec
compl
From surviving Smes to dynamic
networks
spec
Investing on subcontractors to
move towards dynamic network
compl
spec
Supporting local networks to
become dynamic networks
compl
Impact of web on Smes
Deepening specialization possibilities
Widening
complementarity
opportunities
A strategy for increasing added
value and the efficiency of the
production system requires a basic
infrastructure for increasing human
capital training and mobility
To transform possibilities and opportunities in
Production organizations adequate to the
New extent of the global market
Entrepreneur training goals
-Adopting the technologies more
relevant for our country in our times
- understanding of the complexity of
present world and the relation between
the needs of our country and the
dynamics of world ecoonomy
- Consolidation of the social intangible
capital
Rethinking industrial policies for
SMEs means to create a positive
environment for growth
In this context it is
necessary to combine
different set of policies,
according to the different
SMEs typology and the
policy strategy adopted by
the government
The recent debate
on development and
the experiences of
European policy
making have
stressed two basic
concepts to analyse
economic dynamics
and structural
change
INNOVATION
TERRITORY
These two concepts are necessary but not
sufficient to define the new idea of
development
We introduce the two concepts of
ENTITLEMENTS and PROVISIONS
ENTITLEMENTS
PROVISIONS
innovation
entitlements
provisions
territory
Human
capital
policies
Innovation
entitlements
Social
policies
Innovation
policies
provisions
territory
regional
policies
4) In all cases we
need proper
Educ.Policies
1 ) In the case A we
start
from Social policy
3) In case B we
can start from
Tech.policy
2) In the cases
B and D we can
start from
Territorial policy
High-tech spin off companies
Companies innovating
local networks
Enterprises responding
social needs
Reinventing traditional jobs
Whole-of-government approach
•to increase the added value
and the efficiency of the
entire productive system
• we need to provide an
intelligent infrastructure
devoted
• to raise specialization and
complementarity among the
actors
• to strengthen human and
social capital
•to improve individual and
collective entrepreneurship
EMILIA ROMAGNA the
policy focus
Education and
HC policies
Integrated
policies
Social
and
cohesion
policy
Spinner, university
and research spin
off
Technopoles
and tech.
innovation
policies
Services to
industrial districts
3 year courses
Education and
professional training
Education and professional training
V
Diploma profes
IV
III
PERCORSI TRIE
QUALIFIC
II
I
Licei
Istituti
Tecnici
Istituti
Professionali
IeFP
Rete politecnica
HIGH SCHOOL OF
TECHNOLOGY NETWORK
ITS, 2 years
IFTS, 1 year
FS, long learning
Rete Politecnica
Hst network
Università
RETE
POLITECNICA
ITS
IFTS
FS
V
Diploma professionale
IV
III
PERCORSI
TRIENNALI A
QUALIFICA
II
I
Licei
Istituti
Tecnici
Istituti
Professionali
IeFP
La rete politecnica dell’Emilia Romagna
UNIVERSITY AND RESEARCH,
SPIN OFF, INTERN.MOBILITY
Spinner
Grants for TT
Doctorate programmes in
apprenticeship
Intern. Mobility programm
UNIVERSITY AND RESEARCH,
SPIN OFF , INTERN.MOBILITY
Borse di ricerca
Borse di dottorato
Assegni formativi
per l’alta formazione
ALTA FORMAZIONE,
RICERCA E
MOBILITA’
INTERNAZIONALE
Università
RETE
POLITECNICA
ITS
IFTS
FS
V
Diploma professionale
IV
III
PERCORSI
TRIENNALI A
QUALIFICA
II
I
Licei
Istituti
Tecnici
Istituti
Professionali
IeFP
JOBS AND COMPETENCES
apprenticeship
PIL
Enterprises/education
Stabilization programmes
Labour and competencies
PLACEMENTS
Ph.D. thesis
Ph.D. in high level
apprenticeship
Training grants for
higher education
NETWORK OF
POLYTECHNIC
S
ITS
IFTS
FS
Professional
apprenticeship
PLACEMENTS
Professional diploma
Apprenticeship
QUALIFYING
COURSES
Lower
education
Technical
institutes
Professional
institutes
IeFP
Labour market
University
High level
apprenticeship
Job centres
PLACEMENTS
HIGHER EDUCATION,
RESEARCH AND
INTERNATIONAL
MOBILITY
Competencies for productive and
organisational innovation
Research grants
Labour and competencies
innovation
PLACEMENTS
Ph.D. thesis
Ph.D. in high level
apprenticeship
Training grants for
higher education
Education
NETWORK OF
POLYTECHNIC
S
ITS
IFTS
FS
Professional
apprenticeship
PLACEMENTS
Professional diploma
Apprenticeship
welfare
Lower
education
Technical
institutes
Professional
institutes
IeFP
QUALIFYING
COURSES
Job centres
University
territory
High level
apprenticeship
Labour market
PLACEMENTS
HIGHER EDUCATION,
RESEARCH AND
INTERNATIONAL
MOBILITY
Competencies for productive and
organisational innovation
Research grants
1. Education reform
Education and
professional
training
Polytechnics’
network
Higher education,
research and
international
mobility
Competencies
and labour
Rethinking industrial policies for SMEs means
strengthening local community, reinforcing
social capital, promoting civic responsability
building a
smart, inclusive,
sustainable, civil
society
In other words,