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Workshop “Developing European Labour Market Areas” and training on TTWA method The definition of Industrial Districts Silvia Lombardi ISTAT - Italian National Institute of Statistics Nuremberg, 15-16 June 2016
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Workshop “Developing European Labour Market Areas” and ......Transfers to Regions and Autonomous Provinces the role if identifying IDs also on the basis of LMAs 2002: Institute

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Page 1: Workshop “Developing European Labour Market Areas” and ......Transfers to Regions and Autonomous Provinces the role if identifying IDs also on the basis of LMAs 2002: Institute

Workshop “Developing European Labour Market

Areas” and training on TTWA method

The definition of Industrial Districts

Silvia Lombardi

ISTAT - Italian National Institute of Statistics

Nuremberg, 15-16 June 2016

Page 2: Workshop “Developing European Labour Market Areas” and ......Transfers to Regions and Autonomous Provinces the role if identifying IDs also on the basis of LMAs 2002: Institute

1. Introduction

2. The definition of Industrial District

3. The importance of the territorial dimension in local economic

development and policy

4. Mapping methodology of Industrial Districts: a critical review

A) LMAs-based methodologies

B) Not LMAs-based methodologies

C) European and Extra European experiences

5. A comparison across methodologies and conclusions

6. The seminar in Rome

Outline

Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016 2

Page 3: Workshop “Developing European Labour Market Areas” and ......Transfers to Regions and Autonomous Provinces the role if identifying IDs also on the basis of LMAs 2002: Institute

Industrial districts as an application of LMAs for the

identification of meaningful territorial units in Italy

A replicable experience in Europe?

Why mapping industrial districts is important?

Which methodologies for which countries have been

implemented so far?

1. Introduction

Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016 3

Page 4: Workshop “Developing European Labour Market Areas” and ......Transfers to Regions and Autonomous Provinces the role if identifying IDs also on the basis of LMAs 2002: Institute

It All Started with Marshall…

The theoretical history on economic agglomeration is rooted in

Alfred Marshall’s work (1890) “Principles of economics”

In particular:

Book IV, “The Agents of Production. Land, Labour, Capital and

Organization”. Ch. X, “Industrial Organization, Continued. The

Concentration of Specialized Industries in Particular

Localities”.

2. The definition of Industrial District (ID)

Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016 4

Page 5: Workshop “Developing European Labour Market Areas” and ......Transfers to Regions and Autonomous Provinces the role if identifying IDs also on the basis of LMAs 2002: Institute

Analytical tools:

“Marshallian external economies” as determinants of the location

of industries explain the efficiency of firms in localized industries

and IDs

The “industrial atmosphere” enables people living in the district to

learn the industry as if it was “in the air” is the “advantage”

benefited by firms

“External economies are competitive advantages that an

independent producer gains from embeddedness in a system of

organized division of labour.” (Bellandi 2009 in Becattini&al. 2009)

They are external to firms but internal to the system and arise as

the the scale of production increases

5 Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016

Page 6: Workshop “Developing European Labour Market Areas” and ......Transfers to Regions and Autonomous Provinces the role if identifying IDs also on the basis of LMAs 2002: Institute

The theory of ID was developed and conceptualized by the

seminal work of G. Becattini who developed Marshall thinking

Conceptualizes the industrial district as a «unit of

investigation» for the analysis -> revisited Marshall’s external

economies to explain the performance of Italian IDs

In: Becattini G. (1979). Dal “settore” industriale al “distretto”

industriale: alla ricerca dell’unità d’indagine della economia

industriale. Rivista di economia e politica industriale.

Conceptualizes the industrial district as a «model of

production» -> is the starting point for empirical research

(Tuscany, post WW2)

In: Becattini G. Edited by (1987). Mercato e forze locali: il distretto

industriale. Il Mulino, Bologna.

Setting the stage

Source: Sforzi (2015)

6 Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016

Page 7: Workshop “Developing European Labour Market Areas” and ......Transfers to Regions and Autonomous Provinces the role if identifying IDs also on the basis of LMAs 2002: Institute

The ID as a socio economic concept

Definition of ID: “a socio territorial entity which is characterized by

the active presence of both a community of people and a

population of firms in one naturally and historically bounded

area.” (Becattini 1990:38)

Stylized facts on IDs: the social side

The sense of belonging of the human agents of

production (employers and workers) to the place where

production actually occurs.

The values of a local community support the industrial

organization of a population of firms

7 Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016

Page 8: Workshop “Developing European Labour Market Areas” and ......Transfers to Regions and Autonomous Provinces the role if identifying IDs also on the basis of LMAs 2002: Institute

Stylized facts on IDs: the tecno-economic side

SMEs-based

Firms are specialized in specific production phases of the

same production process (spinning, weaving, dyeing,

finishing, etc.) organized in flexible teams

Local phase markets

Local labour markets for specialized skills

Firms have access to external economies

(specialization, learning, creativity) based on access to

collective resources (public infrastructure, social capital

and networks and pools of human and technical capitals)

Source: Becattini (2002)

8 Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016

Page 9: Workshop “Developing European Labour Market Areas” and ......Transfers to Regions and Autonomous Provinces the role if identifying IDs also on the basis of LMAs 2002: Institute

Industrial district vs industrial clusters (and other forms of

localized industries)

Industrial clusters (IC): «Clusters are geographic concentrations of

interconnected companies, specialized suppliers, service

providers, firms in related industries, and associated institutions in

particular fields that compete but also cooperate» (…)

«The geographic scope of a cluster can be a single city or state

or a country or even a network of neighbouring countries»

(Porter, 1998, pp. 197 and following).

• Geographical proximity

• «industries connected through vertical (buyer/supplier) and

horizontal (common customers, technology, distribution

channels, etc.) relationships» (Porter, 1990, p.73).

“(…) people (the local community) is the missing component,

unlike in the case of the definition of the ID” (Sforzi 2015: 21)

9 Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016

Page 10: Workshop “Developing European Labour Market Areas” and ......Transfers to Regions and Autonomous Provinces the role if identifying IDs also on the basis of LMAs 2002: Institute

Rationale for ID: the community of people and the population of

firms, external economies, economic change

Rationale for IC: geographical proximity of firms and institutions

Rationale for industrial agglomerations: the presence of

labour pooling, intermediate inputs, and

technological/knowledge spillovers (agglomeration economies)

10 Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016

Page 11: Workshop “Developing European Labour Market Areas” and ......Transfers to Regions and Autonomous Provinces the role if identifying IDs also on the basis of LMAs 2002: Institute

3. The importance of the territorial dimension in policy

making

The international debate on agglomerations of firms is increasing

i.e. The role of IDs in regional sciences, the role of industrial

clusters in emerging economies, etc. …

What matters is not only the implication of physical proximity

itself, but its effects in terms of external economies and

reproduction of local contexts

i.e. cultural proximity and its relation with learning and

innovation (knowledge spillovers); external economies and

their role in division of labour, competitive reactions to

challenges of globalization.

11 Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016

Page 12: Workshop “Developing European Labour Market Areas” and ......Transfers to Regions and Autonomous Provinces the role if identifying IDs also on the basis of LMAs 2002: Institute

Why localized industries are important?

Such an interest is due to the role that localized industries play in

terms of local economic development (Becattini&al. 2009)

In the Italian case, it is acknowledged the “Italian structural

paradox” (Cannari&Signorini 2000) [i.e. few large firms,

specialization in low tech “traditional sectors”]

‘Geo-sector specialization’ (Alampi&al. 2013) is therefore the

explanation of the source of competitive advantage, in addition to

firm size and high tech specialization

However, IDs are claimed to be the product of Italy’s

industrialization by some scholars

12 Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016

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Why mapping IDs is essential?

In Italy, the work of Becattini has exemplified the ID through the

empirical evidence:

IDs have been an interpretative tool in understanding Italian

development since World War II

Mapping of IDs has been the quantitative evidence of the IDs

thesis which rose the attention of policy makers

the territorial dimension as the basis for economic/industrial

(local) policies

13 Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016

Page 14: Workshop “Developing European Labour Market Areas” and ......Transfers to Regions and Autonomous Provinces the role if identifying IDs also on the basis of LMAs 2002: Institute

Since the 1980s, the territorial policies began to incorporate more

and more directly the concepts of local production system and

IDs

• In the case of innovation, policies began to define strategies

for providing support to the innovative processes rooted at the

local level (in addition to interventions that designed to

stimulate investments in individual firms)

-> initial attempt: the creation of business development

service centers and the promotion of consortia among IDs

firms (1980s)

In the 1990s and the beginning of the 2000s IDs were legally

recognized as instruments for industrial policy

14

The legal framework – The 1980s

Page 15: Workshop “Developing European Labour Market Areas” and ......Transfers to Regions and Autonomous Provinces the role if identifying IDs also on the basis of LMAs 2002: Institute

The legal framework – The 1990s

1991: Law n. 317/91 «Interventions for innovation and development

in small enterprises» is the National law on IDs.

Article 36 defines ID as a “territorial area characterised by high concentration

of small enterprises having a productive specialisation and where a special

relationship between local population and enterprises exists”.

Since 1991 the ID is a legal instrument for industrial policy

Since 1993: Regional laws for the identification of IDs

1993: Decree 21/04/93 by the Ministry of Industry IDs must be identified among LMAs (ISTAT) + IDs must be manufacturing in

terms of employment and establishments. Regions can identify their own IDs

1999: Law n.140 /1999 «Regulation on productive activities» introduces Local Production Systems (IDs are a type of LPS, identified by

less rigid criteria)

15 Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016

Source: Istat (2015c)

Page 16: Workshop “Developing European Labour Market Areas” and ......Transfers to Regions and Autonomous Provinces the role if identifying IDs also on the basis of LMAs 2002: Institute

2001: Deliberation CIPE/2001 «Criteria for subdivision of national

territory into LMAs and identification of productive districts»

Transfers to Regions and Autonomous Provinces the role if

identifying IDs also on the basis of LMAs

2002: Institute for Industrial Promotion – Ministry of Industry is

a first assessment of the Italian experience of IDs

At the regional level, national legislation has been adopted by 13 out of 20

regions (Piedmont, Lombardy, Veneto, Friuli-Venezia Giulia, Liguria,

Marche, Toscana, Lazio, Abruzzo, Campania, Basilicata, Sicilia, Sardinia)

which have identified Ids (Regional Laws, Deliberations)

Late 2000s: regional laws supporting traditional IDs were not

implemented

16 Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016

The legal framework – The 2000s

Source: Istat (2015c)

Page 17: Workshop “Developing European Labour Market Areas” and ......Transfers to Regions and Autonomous Provinces the role if identifying IDs also on the basis of LMAs 2002: Institute

During the 2010s, regional policies became more incisive with

respect to territorial systemic units and sectors

In the case of innovation, a wide number of policies target

territorial systemic units such as:

• the promotion of “technological districts” (2000s).

• the promotion of network contracts and of innovative start-

ups (plus other supporting actions to the activity of SMEs on

the basis of the SBA Directive at national and regional level)

• the national technology clusters (since the beginning of

2010s).

17

The legal framework – The 2010s

Page 18: Workshop “Developing European Labour Market Areas” and ......Transfers to Regions and Autonomous Provinces the role if identifying IDs also on the basis of LMAs 2002: Institute

…So far: only the Italian Commission for the Guarantee of Quality

of Statistics Information (2005) has provided a complete review of

methodologies

Here an updated review is presented following three main groups

of methodologies:

A) LMAs-based methodologies

B) Not LMAs-based methodologies

C) European and Extra European experiences (IDs/ICs)

4. Mapping methodology of industrial districts: a

critical review

18 Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016

Page 19: Workshop “Developing European Labour Market Areas” and ......Transfers to Regions and Autonomous Provinces the role if identifying IDs also on the basis of LMAs 2002: Institute

A) LMAs-based methodologies

A1) Istat 2015 mapping methodology (2011 LMAs methodology)

The methodology relies on employment data at the firm level

provided by 2011 Business Census (enterprises, not for profit

institutions and public institutions)

Employment data is calculated by LMAs and by economic sector

The algorithm in four steps is composed of a hierarchical procedure

which determines the dominant industry and the presence of SMEs

by means of LQ and prevalence indexes at the LMA level

It identifies LMAs specialized in manufacturing based on SMEs

and a dominant manufacturing specialization mainly based on

SMEs

19 Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016

Page 20: Workshop “Developing European Labour Market Areas” and ......Transfers to Regions and Autonomous Provinces the role if identifying IDs also on the basis of LMAs 2002: Institute

Variables

All production activities (NACE Rev.2) are grouped in:

Agricultural activities, Extractive industry, Construction, Manufacturing

Business services, Consumer services, Social services and Traditional

services

Manufacturing activities are grouped into eleven categories:

Textile and clothing; leather and footwear; households goods (wooden

furniture, tiles and other glass and ceramics items); jewellery, musical

instruments and toys; food and beverages; machinery; electrical and

optical equipment; manufacture of basic metals and fabricated metal

products; chemicals and plastics; transport equipment; paper, publishing

and printing; other manufacturing activities.

Firm size: four sizes-European classification of micro enterprise

Micro : up to 9 persons employed Small: 10-49 Medium: 50-249

Large: over 250 persons employed MSMEs

20 Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016

Page 21: Workshop “Developing European Labour Market Areas” and ......Transfers to Regions and Autonomous Provinces the role if identifying IDs also on the basis of LMAs 2002: Institute

The four steps (some traits 1/2)

STEP 1: identification of LMAs specialized in manufacturing (among 9

macro categories of all economic sectors)

• 1.A LQm = ( LMAemp, Nace / ITAemp, Nace ) / ( LMAemp, tot / ITAemp, tot )

• 1.B Prevailing employment in Business services, consumer

services, manufacturing

[( LMAemp, Nace / ITAemp, Nace ) - ( LMAemp, tot / ITAemp, tot )] * ITAemp, Nace

LMAs with prevailing employment in munufacturing go to Step 2

STEP 2: identification of manufacturing LMAs featured by MSMEs

• ( LMAemp (class), manif / ITAemp (class), manif ) / ( LMAemp, manif / ITAemp, manif )

21 Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016

Page 22: Workshop “Developing European Labour Market Areas” and ......Transfers to Regions and Autonomous Provinces the role if identifying IDs also on the basis of LMAs 2002: Institute

The four steps (some traits 2/2)

STEP 3: identification of dominant industry of manufacturing SMEs-

based LMAs (among the 11 manufacturing categories)

• 3.A ( LMAemp, ind / ITAemp, ind ) / (LMAemp, man / ITAemp, man )

• 3.B defines the dominant industry

[(LMAemp, ind / ITAemp, ind ) – (LMAemp, man / ITAemp, man )] * ITAemp, ind

STEP 4: identification of LMAs based on MSMEs by verifying firms size

of the dominant industry

• 4A ( LMAemp (mpmi), dom_ind / LMAemp (tot), dom_ind ) > 50,0%

In case of only one medium enterprise:

• 4B1 ( LMAemp (p_imp), dom_ind / LMAemp (m_imp), dom_ind ) > 50,0%

• 4B2 ( LMAemp (micro_imp), dom_ind / LMAemp (m_imp),dom_ ind ) > 50,0%

22 Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016

Page 23: Workshop “Developing European Labour Market Areas” and ......Transfers to Regions and Autonomous Provinces the role if identifying IDs also on the basis of LMAs 2002: Institute

Industrial Districts 2011

23 Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016

Business Census data in 2011

identified a set of 141 IDs (out of

611 LMAs) (Istat 2015)

Almost one fourth of total Italian

employment was absorbed by

IDs (24,5%)

Such share grows up

to 37,9% in terms of

manufacturing employment

Mainly specialized in mechanicals

(27% of IDs), textile and clothing

(23%), household goods (17%) Textile and clothing

Leather Household goods Jewelry, musical instruments, etc.

Food industry Mechanicals

Metallurgy Chemicals and plastics Polygraphs

No ID

http://www.istat.it/it/archivio/150320

Istat (2015a)

Page 24: Workshop “Developing European Labour Market Areas” and ......Transfers to Regions and Autonomous Provinces the role if identifying IDs also on the basis of LMAs 2002: Institute

LMAs 2011 (611)

Non Manufacturing

LMAs(391)

Manufacturing LMAs (220)

MSMEs based Manufacturing

LMAs(151)

LEs based Manufacturing

LMAs (69)

LEs based Manufacturing

LMAs with prevailing

MSMEs (28)

Other MSMEs

based

Manufacturing

LMAs (10)

Industrial

Districts

(141)

Other LEs based

Manufacturing LMAs (41)

Flow and intermediate results

Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016 24

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Further LMAs: the role for large firms

STEP 1: identification of LMAs specialized in manufacturing

(among 9 macro categories of all economic sectors)

STEP 2: identification of manufacturing LMAs featured by Large

Enterprises (LEs) -> 69 in Italy in 2011

STEP 3: identification of dominant industry of manufacturing LEs-

based LMAs (among 11 manufacturing categories)

STEP 4: identification of LEs-based LMAs that have more than

50% of persons employed in the dominant industry of MSMEs (29

in 2001)

25 Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016

http://www.istat.it/it/archivio/150320

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LEs-based LMAs (2011)

26 Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016

Textile and clothing (3)

Leather (2)

Household goods (5)

Food industry (4)

Mechanicals (9)

Chemicals and plastics (3)

Polygraphs (2)

28 LMAs based on LEs with

prevalence of MPMI

One third is specialized in

mechanicals, follofew by house

hold goods(18%) and food

industry

One region (Emilia Romagna)

absorbs one third of total and

manufacturing employment of

LEs LMAs

http://www.istat.it/it/archivio/150320

Istat (2015a)

Page 27: Workshop “Developing European Labour Market Areas” and ......Transfers to Regions and Autonomous Provinces the role if identifying IDs also on the basis of LMAs 2002: Institute

A) LMAs-based methodologies

A1) Istat 2015a mapping methodology (years 2011 and 2001)

A2) Sforzi-Istat mapping methodology (years 1981, 1991, 2001)

-> 3 firms’ class sizes Sforzi&Lorenzini (2002)

A3) Extension of Sforzi-Istat: Canello&Pavone (2015)

not NACE classification but deriving from the NAS; indicators

based on population and establishments/local units

A4) Against the dichotomy ID/not ID: Signorini&Cannari (2000);

Brusco&Paba (1997)

A5) Methodologies focused on specialization of IDs:

Fortis&Carminati (2008); Istat classifications of LMAS (2006 and

2015b) based on cluster analysis Cattivelli&Iuzzolino (2014)

27 Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016

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B) Not LMAs-based methodologies

These approaches do not need ex-ante territorial units since they

aim to detect high levels of agglomeration on the basis of the

lowest administrative division level: the municipality in Italy

They disregard the socio-cultural environment behind the

agglomeration of firms. It is the price to pay in order to have a

more flexible and endogenous data driven algorithm

(Cannari&Signorini 2000).

B1) Iuzzolino (2004 and 2014) data driven, applies Ellison e

Glaeser (1997) agglomeration index. Filiéres are based on input-

output tables. The 2013 version is a modification of 2004 algorithm in

order to take into consideration socio-cultural aspects.

B2) Abbate&Merlini (2010): contiguity index

28 Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016

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C) International experiences

C1) For industrial clusters (AMONG OTHERS):

- UK: Department of Industry and Trade (DTI): LQ applied to

regions in order to identify business clusters “Business

clusters in the UK - A first assessment” (2001)

- European Cluster Observatory: sectoral statistical analysis of

regional data for several key performance indicators

- US cluster mapping: regional clusters based on the LQ. The

geographic scope is the administratively defined region. The

algorithm relies upon clustering analysis incorporates

measures of inter-industry linkages based on co-location

patterns, input-output links (Delgado, Porter and Stern, 2014)

29 Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016

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C2.1) For industrial districts - Quantitative methodologies

(Spain, Great Britain, Germany, France)

- The mapping of IDs in Spain (Boix 2009 in Becattini&al. 2009)

Commissioned by the Spanish government (Ministry of Industry)

and coordinated by the Universitat Autònoma da Barcelona.

First application: 2001 data and Istat-2001 methodology of

identification of LMAs (Boix and Galletto 2006)

Results showed (expected) similarities between Italy and Spain

since both countries have low incidence of large enterprises

(<0.5% in number and <30% in terms of contribution to

manufacturing employment)

- IDs in Germany: Brenner (2006), manufacturing firms

distribution within Kreise; Alampi et al(2013) apply

Iuzzolino/Ellison &Glaeser test to Kreise and find 37 IDs

30 Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016

Page 31: Workshop “Developing European Labour Market Areas” and ......Transfers to Regions and Autonomous Provinces the role if identifying IDs also on the basis of LMAs 2002: Institute

- The mapping of IDs in UK (De Propris 2009 in Becattini&al.

2009)

In UK there was an established tradition in defining LMAs: TTWA

existed since 1980s

First attempt: Crouch and Farrell (2001) industrial local systems

identified on the basis if LQ and indexes of production

concentration and rations on 1996 data by TTWA and by 3-digit

economic sectors. 24 IDs

First application of Istat-1990 methodology to 1997 data was in De

Propris 2005 (overall 47 IDs) and then 2009 (40 IDs)

- IDs in France: INSEE, dominant sectors with respect to

national average by employment zones; Guégan&Rousier

(1989) LQ, no class sizes; Alampi et al. (2013) apply

Iuzzolino/Ellison &Glaeser agglomerations index and find 12

IDs

31 Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016

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C2.1) For industrial districts – Qualitative studies

- France (Benko&Pecqueur 2009 in Becattini&al. 2009)

Since mid 1980s emerge Local Production Systems (LPSs) as target for

industrial policies by DATAR (Délégation interministérielle à

l'aménagement du territoire et à l'attractivité régionale). Since 2005 LPSs

take the form of Poles of competitiveness, the successors of the PLSs of

the mid 1990s and at the heart of French industrial policy

- Scandinavian countries (Johannisson in Becattini&al. 2009):

Sweden, Denmark, Norway

- The mapping of IDs in China (Wang&Mei 2009 in Becattini&al.

2009)

- Japan (Okamoto 2009 in Becattini&al. 2009): success cases

In many developed (industrialized) countries empirical evidence is

still qualitative or it is not built on a sound quantitative

methodology

32 Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016

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A European comparison across methodologies

Territorial

unit

Methodology

for LMA

Year of

data

utilized

N. IDs

(by methodology)

% on

manufa

cturing

LMAs

% of

manufa

cturing

employ

ment in

IDs

% on

LMAs Source

ISTAT OTHER M.

ITALY LMAs Istat/2011Euro 2011 141 64% 38% 23.1% Istat (2015)

LMAs Istat/2011Euro 2001 181 Istat (2015)

LMAs Istat/2001 2001 185 Canello e Pavone (2015)

LMAs Istat/2001 2001 132 Alampi et al. (2013)

Minucipality - 2001 155 Abbate and Merlini (2010)

LMAs Istat/2001 2001 153 Edison (2008)

LMAs Istat/2001 2001 156 39.3% 22.7% Istat (2006)

Minucipality - 2001 156 50% Iuzzolino (2004)

SPAIN 806 LMAs Istat/2001 2001 205 61.7% 34.8% 25.4% Boix(2009) Handbook of IDs

GREAT

BRITAIN

232 TTWAs UK 2001 40 41.2% 4% 17.2% De Propris (2009) Handbook of IDs

TTWAs UK 1997 47 21% De Propris (2005)

TTWAs UK 1996 24 Crouch and Farrell (2001)

FRANCE 348 Ezs FR 2006 12 20.10% Alampi et al. (2013)

GERMANY 440 Kreise D 2001 37 17.10% Alampi et al. (2013)

33 Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016

Source: author’s collection

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LESSONS LEARNED (1/3)

The comparison of results of such studies high light the need for

1. A harmonized LMAs structure for EU countries

2. Study of variance of results (IDs, LEs-based LMAs) within

countries and between countries/sectors

AIM: to help policy makers in identifying the actions that should be

accomplished in order to implement European

economic/industrial/enterprise policies

34 Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016

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• From Alampi et al. (2013):Italian industry is strongly characterized

still in the first half of the 2000s’, with respect to strong competitors

like France and Germany, by the presence of agglomerations of

SMEs, of course in the so-called low tech sectors but also in

medium to high tech sectors

• A ‘selection effect’ has to be taken into account while applying

methodologies in single countries/all countries

• From Handbook of IDs (2009): Industrial districts present a large

variety of types along history and geography

35

LESSONS LEARNED (2/3)

Page 36: Workshop “Developing European Labour Market Areas” and ......Transfers to Regions and Autonomous Provinces the role if identifying IDs also on the basis of LMAs 2002: Institute

The role for official statistics in Policy making by a place-based

approach

• Provides harmonized statistically based geography that

identifies proper labour market at the EU level

• Countries can characterized them in terms of industries

• And estimate indicators at the LMA level in order to detect

regional disparities and tendencies useful to identify actions to

implement EU policy

36

LESSONS LEARNED (3/3)

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• The algorithm: analytical steps

• The algorithm in SAS and R

• Sensitivity tests

• Output

• Bring your data!

Micro data / aggregate data by LMA

- on Business Census (establishments/local units level)

- Statistical units: Enterprises, public and not for profit institutions

- Variables: economic activity (Nace Rev.2 classification, 5 digit),

LMA

- Count: persons employed by LMA and economic activity, N. of

establishments by LMA and economic activity

5. The seminar in Rome

37 Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016

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Thank your for your attention!

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44 Silvia Lombardi – “The definition of Industrial Districts”. Nuremberg, 16 June 2016