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Patrizio Bianchi Full professor of Applied Economics Bologna University 1990 -1997

EU COHESION POLICY SUPPORTS THE SMEs KEYNOTE SPEECHES – THE ROLE OF THE SMEs: OPPORTUNITIES AND CHALLENGES Prof. Patrizio Bianchi University of Ferrara, 1391 and Regione Emilia – Romagna Government Barcelona, 13 march 2014. Patrizio Bianchi Full professor of Applied Economics

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Patrizio Bianchi Full professor of Applied Economics Bologna University 1990 -1997

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  1. EU COHESION POLICY SUPPORTS THE SMEsKEYNOTE SPEECHES – THE ROLE OF THE SMEs: OPPORTUNITIES AND CHALLENGES Prof. Patrizio BianchiUniversity of Ferrara, 1391 and Regione Emilia – Romagna GovernmentBarcelona, 13 march 2014

  2. 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, Productivityand 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

  3. Globalization and the reinassance of manufacturing • A taxonomy for SMEs • A new approach to industrial policy • The policy experience of ER • Final remarks: risks and opportunities for European SMEs I P E T

  4. 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 (IMF data; IMF Data Mapper Jan 2013)

  5. Adam Smith • “As it is the power of exchanging that gives occasion to the division oflabour, so the extent of this division must always be limited by the extent of that power, or, in other words, by the extent of themarket” (WN, I,3, p.40)

  6. “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

  7. 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

  8. Division of labour: the organization of production Mass production capital distribution labour Final transf. primary Source s intermediate Raw materials

  9. Differentiated production K D1 L S P I1 F1 T I2 F2 D2

  10. DIFFERENT MODELS OF PRODUCTION ORGANIZATION Fordist S – P – I – F – D ------------------------- Flexible S – P – I – F1 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

  11. 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

  12. 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

  13. CRISIS: Countries reacted differently to the change in the extent of the market determined by globalization R&S, Multinationals: financial aggregates, 376 companies, milan 2012

  14. Oecd technology intensity based on % breakdown of net sales R&S, Multinationals: financial aggregates, 376 companies, milan 2012

  15. And differently invested in Human capital Public expenditure on education 2010 as % total exp. And as %GDP

  16. And in research Gerd oecd in mil. dollar current

  17. 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

  18. 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

  19. Industrial efficiency stems from • Specialization of individual activity • Complementarity of collective action

  20. A taxonomy based on Using 2 variables • x = complementarity • y = specialization • We have 4 different groups of companies requiring different policy approaches

  21. A taxonomy based on Using 2 variables x = complementarity y = specialization We have 4 different groups of companies requiring different policy approaches

  22. 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)

  23. specialization C. high spec., low compl. (speciality subcontractor D. high spec., high compl. (dynamic networks) A .low spec., low compl. (surviving companies B. low spec., high compl. (local network complementarity

  24. Different strategies from low spec/low compl. to high spec / high compl.

  25. spec compl From surviving Smes to dynamic networks

  26. spec compl Investing on subcontractors to move towards dynamic network

  27. spec compl Supporting local networks to become dynamic networks

  28. Impact of web on Smes Deepening specialization possibilities Widening complementarity opportunities

  29. 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

  30. 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

  31. 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

  32. 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

  33. 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

  34. innovation entitlements provisions territory

  35. Human capital policies Innovation policies Innovation entitlements provisions regional policies Social policies territory

  36. Provisions Human Capital Policies Innovation Policies Innovation Entitlements Social Policies Territorial Policies

  37. Human Capital Policies Innovation Policies Innovation Entitlements Social Policies Territorial Policies

  38. 4) In all cases we need proper Educ.Policies 3) In case B we can start from Tech.policy 2) In the cases B and D we can start from Territorial policy 1 ) In the case A we start from Social policy

  39. High-tech spin off companies Enterprises responding social needs Companies innovating local networks Reinventing traditional jobs

  40. Whole-of-government approach

  41. 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

  42. EMILIA ROMAGNA the policy focus Spinner, university and research spin off Education and HC policies Technopoles and tech. innovation policies Integrated policies Social and cohesion policy Services to industrial districts

  43. 3 year courses Education and professional training

  44. Education and professional training V IV III II I Diploma professionale PERCORSI TRIENNALI A QUALIFICA Istituti Tecnici Istituti Professionali IeFP Licei

  45. Rete politecnica HIGH SCHOOL OF TECHNOLOGY NETWORK ITS, 2 years IFTS, 1 year FS, long learning

  46. RETE POLITECNICA Università IFTS ITS FS Rete Politecnica Hst network V IV III II I Diploma professionale PERCORSI TRIENNALI A QUALIFICA Istituti Tecnici Istituti Professionali IeFP Licei

  47. La rete politecnica dell’Emilia Romagna

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