1. MDA Constitutional processes for New Productive Territories Paolo Gurisatti Trento, December 16, 2004

2. MDA Industrial Policies in Italy Three different stages of Italian industrial policies: – for Industrial Sectors (1975-1984) – for Environment Factors (1985-1994) – for Regional “Territories” (1995-2004) No one of these policies fulfilled its objectives

3. MDA New Sectors Objective: shifting the economy from traditional sectors toward advanced sectors (fast growing demand and high tech industries) Tools: National planning (scientific elites and large state-owned public companies) Hypothesis: product cycle and “one best way” Results: Fiat/Olivetti and “Made in Italy”

4. MDA Objective: creating advanced services and external economies (competitive Nation). Tools: general agreement among trade associations and the National State, in order to produce training and innovation services (National agencies) Hypothesis: competitive advantage of nations Results: efficiency failures in public services Environment Factors

5. MDA Clusters and Territories Objective: increasing SMEs competitiveness, clusters and local institutions (districts). Tool: public services for local value chains and local agreements (local development agencies) Hypothesis: crisis of the National State and rise of regional economies Results: impossible application of Law 317/92

6. MDA Why so many failures? Different objectives, same logical approach: –Development path is “unic” (one best way) and may be codified ex-ante (by scientific analysis) –Technocratic and Bureaucratic knowledge (elites) are more porwerful than others –Policy objectives can be defined by public agencies (in a paternalistic attitude) –Governance tools are financial and administrative

7. MDA An alternative approach Policy makers can base their action on new hypothesis: –Development propagates by “hybridisation” and it is impossible to pre-define it and then “clone” it –Technocratic elites knowledge/role has to be “productive” and not ranking higher than “productive citizens” knowledge/role –Policy objectives are the final result of complex social processes (cognitive value chains - SCOT) –Governance tools are intermediary functions

8. MDA Constitutional processes Policies have to promote constitutional processes: –“Productive Territories” are cognitive spaces (no more administrative portions) –Cognitive spaces are produced by localised “bottom-up” constitutional processes –Constitutional processes (building a new market system) are based on collective knowledge –New collective knowledge can be fostered by a new kind of citizenship (productive citizenship)

9. MDA Northeastern Italy as a laboratory The North East of Italy counts a huge number of constitutional processes due to: –Historical routes (State-Towns of Renaissance) –Political reasons (pheriferical position in front of the “Capital” model) –Technical and Cognitive bases (plenty of SMEs and industrial districts)

10. MDA The Veneto Region’s Law 8/2003 A “productive territories” policy in three steps: –Self-organisation and constitution of local “productive districts” (Selection) –Call for projects and participation to the Regional Policy Board (Design) –Support and financing of projects (40% public funding – Evaluation)

11. MDA Preliminary results Exploitment of local resources: 50 constitutions (10 innovative) e 5.000 SMEs involved Diffusion of the “productive territory” culture as an advanced team game, competitive in front of large hierarchical corporations Conflict between new roles (Representatives in the Policy Board) and traditional intermediary structures

12. MDA Problems Traditional intermediary structures re-gain central position in the Policy Board (with little improvement in knowledge/role) Regional “Technocrats” find difficult to select innovative constitutions and projects SMEs find cultural/technical problems in participating to constitutional processes and call for new intermediary functions

13. MDA Suggestions for LEED Program Constitutional processes for new “productive territories” can exploit local resources, that are usually underscored by development policies Financing operative projects, linked to measurable results (export, social upgrade..), simplifies policy evaluation Conflict among productive citizens and intermediary structures creates new knowledge