World class cluster born on reindustrialization of Olivetti settlement Ilaria Massari

Parallel 4.3 Topics on New Cluster Trends

12 November 2014

Lombardia Region (one of the 4 Motors of Europe)

- Population : 9,7 million

- Entreprises: more than 800.000

- It generates 25 % of GDP of Italy

- 13 of the major Italian University

Crema city and area

- in the heart of Po river valley

- 165.000 inhabitants

- Close to Milan and other main industrial cities

- Hystoric center and dynamic atmosphere

CITY OF CREMA,

IN LOMBARDIA REGION (ITALY)

Olivetti dynasty was full of farsighted entrepreneurs.

Camillo Olivetti, the father of Adriano, studied electronics in the NineteenthCentury, in 1880. He went from Italy to vist Palo Alto, at the developmentof Silicon Valley. In US he understood the social value of business.

He saw there for the first time the mechanical typewriters.

He came back to Italy, in 1908 he founded the first national typerwriterproduction where he started to develop the first electric typewriter in the world.

Adriano Olivetti was an amazing forwardlooking entrepreneur, even more than the father, setting the basis for the first commercial desktop computer (Programma 101), which was produced in 1964 and had a big success in the U.S. market.

More than 3000 employees, in Crema, and a total of more than 50.000 in the best years.

OLIVETTI IN BRIEF: A GREAT AND UNIQUE INDUSTRIAL STORY

OLIVETTI IN BRIEF: A GREAT AND UNIQUE INDUSTRIAL STORY

«COMMUNITY» , political Manifesto of Adriano Olivetti

- Advanced working organization

- Wellness of employees and participation

- Mondern open working space

- Design, music, poetry and games

- Shareholders value (community and citizens)

- Canteens and kindergardens

- Houses for employees

Olivetti considered himself in charge of the community

wellness. So did the entire company.

INTANGIBLE ASSETS CREATED BY OLIVETTI: COMMUNITY VALUES

HUGE PROGRAM OF REINDUSTRIALIZATION

• Surface of 364.000 square meters

• More than 3000 employee and families without jobs

• No services in the industrial area

• Dozens of SME of the chain withoutcontractors

• Public investment dedicated € 69 Mil.

REINDUSTRIALIZATION PATH, SINCE 1995 TO 2004

GREAT RESULTS SERVICES CREATED

• REINDUSTRIA Agency, fully engaged in the mission of reindustrialization

• UNIVERSITY course development and research

• CREMA RICERCHE – center for technology transfer and start up, in close collaboration with the University

• NEW FRAMEWORK CONDITIONS -Renovation of framework conditions (administrative and fiscal)

REINDUSTRIALIZATION PATH, SINCE 1995 TO 2004

205 small and medium entreprises have started in the following 10 years.

735 jobs created.

STEP 1: mappinglocal

specialisation(small and medium

entreprises)

STEP 2: value chain analysis

with directengagement of companies in

order to definepriorities

STEP 3: needanalysis. Definition

of short termations and sharing

perspectives on long term aims

STEP 4: planning financial

sustainability for each purpose and

monitor

STEP 5:Strategic

assessment and governance of

the whole cluster initiative

2004, THE IDEA: CLUSTERING IN ORDER TO OPTIMIZE EFFORTS

STEP 1: MAPPING LOCAL SPECIALISATION (2005)

ACTIVITIES: • Mapping the presence of relevant sector in the area• 2 years of consultation between public and private entities(triple helix model), generating a deep study on the area of Crema “Il Cremasco” http://www.reindustria.com/notizie-studi-pubblicazioni.php

OUTCOME: Identification of the local specialisation (small and medium entreprises)• Cosmetic value chain• Metalmechanic sector• Agrofood chain

FIRST TARGET: the cosmetic sector (ON REQUEST OF LEADING ENTREPRENEURS). In 2005 Reindustria verified the great concentration of cosmetic companies in the province of Cremona, through an accurate mapping.

ACTIVITIES: direct engagement of companies through surveys and meetings, in order to understand:

• value chains

• competitive forces

• growth rates of the sector

• needs and priorities of the chain

• perspectives on long term development

OUTCOME (2005):

• Public awareness of the presence and definition of the value chain involved.

• Analysis of the cosmetic cluster consistency in the Cremona Province: quantitative data highlighted 92 enterprises belonging to the cluster. 51 % of the occupational weight of the Italian cosmetic sector is concentrated in Lombardy Region and 60 % of the Italian turnover is here produced.

STEP 2: COSMETICS CHAINANALYSIS (2005) - A -

COSMETIC VALUE CHAIN of the COSMETIC SECTOR in Lombardia Region1. direct producers of cosmetics and related products2. contract packagers3. designers and producers of primary packaging products4. designers and producers of secondary packaging products5. designers and producers of plant and machinery6. specialist service companies 7. trading companies

Strengths: innovative cross-sector applications & great abilities of design and creativity

STEP 2: COSMETICS CHAINANALYSIS (2005) - B -

STEP 3: TARGET PRIORITIES AND DEFINITION OF ACTIONS - A -

TOP PRIORITY (A), as defined by companies themselves:

Cluster visibility and awareness

OUTCOME:

• Better analysis of value chain

• Website of cluster

www.polocosmesi.com

STEP 3: TARGET PRIORITIES AND DEFINITION OF ACTIONS - B -

TOP PRIORITY (B), as defined by companies themselves:

Professional training and investment in competence and know how

OUTCOME:

• Cosmetic training center. In 2006 Lombardy Region funded the project Polo Formativo della Cosmesi, with the aim of creating new professional profiles (cross setting)

• Collaboration with high schools, universities for Workshops, Seminars, Courses

• Collaboration with temporary job agencies for placement policy

• IFTS project : “Science and Technology in the cosmetic sector – technique of industrialisation for product and process”

• Partecipation at 39° National Congress of SICC

STEP 3: TARGET PRIORITIES AND DEFINITION OF ACTIONS - C -

TOP PRIORITY (C), as defined by companies themselves:

Enhancing global dimension

OUTCOME:

• Collective participation at world exhibitions, in each

• Reinforcement of internationalisation policy of most of the companies

STEP 3: TARGET PRIORITIES AND DEFINITION OF ACTIONS - D -

TOP PRIORITY (C), as defined by companies themselves:

Innovation and quality

OUTCOME:

• High level expert cunsultancy support through scale economies

• Concrete innovation services; product and process innovation support

• Shared Technical Director service, - only one - Technical Director at disposal of all the companies (in cooperation with Unipro Srl). Now working on cloud.

• Regulation Reliability path

• Shared Service for Regulation Consultancy (EU D 1223/2009, available on cloud)

• Support service for GMP – Good Manufacturing Practice

It is composed by 8 magical enprepreneurs:

Matteo Moretti (Lumson Spa) President

Roberto Bernocchi - E.P.S. Group Srl

Marco Cicchetti - Omnicos Group Srl

Gennaro Mosti - Emme Erre Srl

Pierangelo Sanzanni - San Cosmetics Srl

Caterina Bondioli - Red of View

Ivan Massari - APS

Giovanni Ciliento - Baralan

BOARD OF DIRECTORS

OF POLO COSMESI

Visibility

Costsreduction

Betterguarantees for

clients

Update on time on Regulation

Increase in quality products

Availability of skilled human

resources

Innovation circulation

BENEFITS FOR MEMBERS OF POLO COSMESI, 150 FIRMS (2014)

Cosmoprof Bologna, Italy

HBA, New York

Beyond Beauty, Paris

Make Up in Paris

Make Up in New York

Luxepack, Monaco

Beauty World Middle East, Dubai

China Beauty Expo, Shangai

Cosmoprof North America, Las Vegas

Cosmoprof Asia – Hong Kong

Cosmoprof San Paolo, Beauty in Brazil

EXHIBITIONS: COLLECTIVE PARTICIPATION AND MISSIONS

Internationalisation competence point, organising COLLECTIVE PARTICIPATION in several international exhibition, almost every year.

Defining scale economies and participants +

Supporting access to public funds +

Booth organization in fairs +Promotion = business for all

Summing companies participations in international fairs since 2006, there havebeen 364 companies involved and 2.295.050 € invested by companies for internationalisation purpose (little cofunds by Chamber of Commerce –vouchers form)

INTERNATIONALISATION SUPPORT

GOING INTERNATIONAL(2006-2014)

An agreement with Cosmetic Valley (Pole de Competitivité in France) has been signed in December 2013, in order to collaborate on multiple scopes.

AGREEMENT WITH COSMETICVALLEY (FRANCE)

1. The Cluster Manager! Alessandra Ginelli

2. Plug & play solution for plants

3. Services for start-ups by Crema Ricerche

4. Facility management by Chamber of Commerce of Cremona

5. Fundraising (public and private)

6. High specialization of human resources and focus on intangible assets

7. Reindustria support and tutorage

CORE COMPETITIVE ADVANTAGEOF POLO COSMESI

LEADERSHIP of intangible assets is as much important as economic results.

READINESS TO CHANGE : A cluster policy must evolve in time (plug&play mode)

ACTIVE INVOLVEMENT : taking care about effective governance of the partnership (public private alliances).

AWARENESS : a cluster is a learning organism, so constant focus is to stimulatecollective learning and interactions between members.

TRUST between members: it is not only trust in people, it is doing business with people who believe what you believe.

IN CONCLUSION, FOCUS ON INTANGIBLE ASSETS

Thank you

Ilaria Massari

Politecnico di Milano

Technical University of Milan – Campus of Cremona

CESVIN Innovation Development Center

ilaria.massari@cesvin.com

Creating shared value through clusters for a sustainable future

Creating intangible assets through aware clusters for a happy future

Innovation demand manager

facilitating development processes and social innovation, through linkages betweenUniversity and entreprises and focused public-private partnership