How to revive (old and new) industries? The case of the Swiss watchmaking

Transcription

1 How to revive (old and new) industries? The case of the Swiss watchmaking Olivier Crevoisier Hugues Jeannerat with inputs of C. Livi University of Neuchâtel (Switzerland) INSEAD, Business breakfast 2013 Abu Dhabi, the 28 th of February 2013

2 The cultural turn in economic geography 1. Cultural industries (cinema, media, publishing, ): Scott 2002, 2004, 2. Creative economy and cities (arts, Knowledge intensive business services, ). Florida 2002, Cooke and Lazzeretti 2008, 3. The experience economy (memorable participation of the customer). Pine and Gillmore 2004, Lorentzen 2010, 4. The knowledge economy (systematic mobilisation of knowledge in economic activities): Foray D. 2000, Cooke 2010, 5. Cultural resources (pooled resources): Kebir L. 2008; Ostrom, An increasing concern about culture, innovation, and territorial development. Lash & Urry 1994; Molotch 2002; Philo & Kearns 1993; Scott 2008,

3 The traditional theory: Territorial innovation models and cluster policies The context and the social demand at the end of the eighties Regional crisis / «winning regions»; Technological change ; From national to the local / global economy ; Small is flexible and innovative (SMEs, local development, the entrepreneur, etc.). Cumulative knowledge trajectories Clusters, innovative milieus, industrial districts, RISs, etc.

4 Model 1: Classic innovative milieus (clusters) - Intense local learning, occasional distant learning - Weak international mobility of capital, labour and competences A «mosaic» of competing and differentiating regions

5 Some contemporary changes 1. The huge increase of mobility and of ICTs asks the question of local anchoring capabilities

6 Mobility and anchoring: a typology REGIONAL KNOWLEDGE DYNAMICS Rich MOBILE KNOWLEDGE DYNAMICS Poor Contextualisation of mobile knowledge Knowledge reciprocal learning Rich Knowledge allocation Assimilation of local knowledge Poor Berset A. and Crevoisier O Crevoisier O. and Jeannerat H. 2009

7 What is an anchoring milieu? An anchoring milieu is a set of local players (firms individuals, public authorities, research and training organisations, etc.) who interact locally and with distant and/or mobile players in order to develop ever more advanced (efficient or meaningful) knowledge on the basis of competition/cooperation rules.

8 Some contemporary changes 1. The huge increase of mobility and of NICTs asks the question of local anchoring capabilities 2. From local / global systems of production and innovation to multilocal, multiscalar production and consumption networks

9 The "commodification of authenticity" in the watch industry Punctual events (auctions, fairs, shows, exhibitions ) Creation of a composite companies in the field of luxury press Swiss watch industry / watch brands Multi-sectoral knowledge dynamics in the promotion of the Swiss Watchmaking authenticity Culturisation through tourism, museums, architecture Convergence of TV, movie production, and Internet Jeannerat H. and Crevoisier O. 2010

10 The territorial staging system of the Swiss Watchmaking Territory of authenticity production Milieu of Swiss watch production and cultural resources of the Jura Territorial event platform of the America s Cup in Valencia Fashion, design and cultural milieu of Paris and Milan International communication, tourism and symbolic milieu of the city of Geneva Territory of image co-production Business services milieu of the Lausanne Event organisation metropolitan area system of Basle Territorial lifestyle and media milieu of Singapore Consumption milieu of Tokyo or Moscow Territory of diffusion Source: Jeannerat and Crevoisier 2008

11 Some contemporary changes 1. The huge increase of mobility and of NICTs asks the question of local anchoring capabilities 2. From local / global systems of production and innovation to multilocal, multiscalar production and consumption networks 3. The intense competition from emerging economies asks for new market conventions of value (authenticity, sustainability, ).

12 Value in the convention model: Technical valuation in industry Producer Objectivation of goods and services User Innovation driven by technology in production commodification final purchase Distribution Local Global Source: Jeannerat 2011

13 Valuation in the Swiss watchmaking industry Valuation is about what is fake or real It relates to an idealised past origin Experiences support authentication: through experiential initiation through experiential relation between producer and consumer Legitimating occurs through debates in medias The territorial staging system organizes a continuity between production and consumption contexts Source: Jeannerat 2011

14 Authenticity valuation Founder Authentification of a good or a service Initiated audience (connoisseurs) Innovation driven by the perpetual quest of an idealized origin Ritualized purchase Delegated consumption in the original production milieu Ritualized experiences Initiation and legitimation of the original value Delegated original production in the consumption milieu Source: Crevoisier and Jeannerat 2011

15 Sustainable valuation in the Swiss solar technologies Valuation is what is responsible and irresponsible It relates to a future, idealized, greener planet. It is partly measured by audience rates. Experiences support commitment: Through technological experiment Through multi-local explorations, journeys transmitted live by medias. The territorial staging system allows customer / citizens take part indirectly to the building of a greener future

16 Market convention of Sustainability valuation Prophetic entrepreneur Experimentation of responsible innovations Committed audience Innovation driven by a vision of an greener future for the planet - Sponsoring - Purchase Audience ratings Subscription to the values of sustainability Staged technical experiment transmitted (live) by media Source: Crevoisier and Jeannerat 2011 Social control (critique of technical failures and irresponsible social behavior)

17 4. From cumulative to combinatorial territorial knowledge dynamics (EURODITE) Substantial knowledge: economically valuable thanks to exclusivity; Significant knowledge: economically valuable through diffusion and sharing.

18 The Swatch group owns more than protected designs Substantive knowledge (owned, controlled) In Skane, inspector Wallander; Academic researchers Significant knowledge, (authored, shared) Properties of knowledge Economic value Stabilised closed, defined, converging integrated in functional devices Based on the content of knowledge and its valorisation on various markets (exploitation) Due to exclusivity Evolving, open, diverging Integrated in systems of meaning Linked to people, to communities and to contexts Due to sharing Source: Crevoisier 2011

19 Mobility Anchoring Substantive Through exchange, submitted to contract Instrumental learning (focused investments) and specialisation Significant By sharing, submitted to professional or citizen community rules Intelligent interactions and contextualised appropriation Source: Crevoisier 2011 A research hypothesis: A cultural economy can only develop where some knowledge is largely shared

20 A typology of regions in a European Munich biotech, Toulouse GNSS, Stuttgart automotive KIBS, Swiss new media Slovakian and Slovenian telecoms Milieu of Knowledge embodying knowledge system Kw as a commodity Management of (substantive) knowledge Contractual mobility: Markets of machines, softwares, licenses, fairs, etc. Milieu of Knowledge embedding Ruhr large events, Skane, Birmingham lean production, Food in Bornholm Technology or symbolic clusters Source: Crevoisier 2010 Mobility through sharing: Mobility of people, conferences, exhibitions, media, etc. Milieu of (significant) knowledge Urban or local buzz Industrial and Tourism regions Fast foods in Paris

21 4. From cumulative to combinatorial territorial knowledge dynamics (EURODITE) Substantial knowledge: economically valuable thanks to exclusivity; Significant knowledge: economically valuable through diffusion and sharing. 5. Business models are more and more complex what is paid for is often not what is valued by users or customers

22 Value in the traditional model: an exchange of existing values P S Price value D Q

23 The Territorial Staging System (TSS) Stage setting as an experiential resource Production resources Stage setting STAGE Experiential engagement Consumption resources Experiential engagement as an economic resource Cities and regions are stages where value is created (infrastructures, media, legitimizing players, etc.).

24 Conclusions and opening Taking seriously creativity and culture into account supposes to escape radically from the traditional model: supply and demand, needs, money as a counterpart of a good, to produce here and to sell globally, A typical space time pattern of value creation could be: Multi-local and multi-scalar production and consumption networks; The Staging System as an hypothetical metaphor for complex economic interactions (consumers, visitors, inhabitants, citizens, medias, investors, ) (Lorenzen A. and Jeannerat H. 2013).