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European Commission
"INNOVATION“ IN REGIONAL
DEVELOPMENT PROCESSES
A (short) plea for considering culture, history and sociooeconomic conditions as important factors (for innovation)
in regional development processes (!)
Mag. Christian Husak, gfa Ltd - L+ NNU Austria
Christian Husak
 Austrian LEADER+ NNU
 Regional development consultant
 Projectmanagement and Projectdevelopment
 Lecturer in National Economics,
Projectmanagement, Marketing and International
Marketing at
 University of applied sciences Graz
 Karl Franzens University Graz
Christian Husak
What roles do natural and
Natural &
cultural
Resources
cultural resources play in the
context of innovation in
regional development ?
Content:
- (short) theoretical background
- (positive) examples
- summary
- discussion
„Innovation“
(theoretical)
Background ...
… common agreement that …
 … development and innovation takes place in
the context of regional behaviour …
(see LEADER,
see UN commission for culture and development …)
 different regions face different (basic) conditions
for regional development and innovation
[ … mostly
depending on
 geographical place (situation) – e. g.: mountainous areas, flatlands,
(cross)border areas …
 regions history and culture …
 regions society (societal structure) …]
(theoretical)
Kockel
(2002)
Background ...
…
Adam Smith, credited as founder of modern economics, still
maintained “a strong sense of the cultural matrix of economic
phenomena”. Unfortunately successive generations of economists
have progressively lost interest in this matrix. … If we study the
relationship between culture and economy, we need to go beyond
the one-dimensional view of society and think of economics as a
societal science, with values, history, institutions and socio-cultural
realities forming an integral part of its explanatory framework …
(Ullrich Kockel; Regional Culture and Economic Development; Hampshire 2002)
RRC
(as theoretic background)
...
Resource Reliance Continuum (RRC)
Natural resources
Cultural resources
continuum
Creation essentially
independent of
human agency (e. g.
plants, animals,
minerals, wind …)
Creation essentially
dependent of human agency
(e. g. industrial products,
finance, infrastructure …)
The use of regional resources is a function of the purpose
and methods of their use which are in turn a function of
institutional structures and ageny motivation.
In this context ...
Attempt to find an answer …
 what kind of conditions encourage regional
development processes (to be successful) ...
 what kind of conditions perhaps may act as
hindering factors for regional development processes
(and therefore for innovation ...)
positive examples ...
POSITIVE EXAMPLES ...
Werkraum
Bregenzerwald ...
Woad in the
Lauragais-area ...
Werkraum Bregenzerwald ...
“regional” situation …
 Region´s horizon is west and north (Vienna and the “iron border”
was far away …)
 “limited space” of the area forced people to work abroad
 Bregenzerwald is seen as an “area of energy” (Landscape,
fresh air, social structure, commitment to tradition …)  “homeland”
 “Today´s enterpreneurs are yesterday´s children” (as children
they built their own toys father´s working-room …)
Werkraum Bregenzerwald ...
economic situation …
 Industrial mass production was the expression of a new
lifestyle (today´s entrepreneurs inherited their companies in the 80´s
and 90´s …)
 Customers faced new styles (e. g. IKEA …)
 The only one chance to be able to compete was to focus
on own strengths (knowledge was inherited from generation to
generation, new technology supported in applying this knowledge –
how to deal with new customer demands (“style-plurality”) was a so far
totally unknown challenge …)
Werkraum Bregenzerwald ...
what happened …
 1991 establishing design competition
“handcraft & form”
 1999 – formation of the association
“Werkraum Bregenzerwald” …
 in a “Lernwerkstatt” apprentices are being trained in old
handicraft-technics and how to use nowadays
 Internet-Homepage www.werkraum.at
Werkraum Bregenzerwald ...
Werkraum Bregenzerwald ...
Werkraum Bregenzerwald ...
some impressions …
washing dish …
Quick port …
cylindric stove …
(plate made)
Werkraum Bregenzerwald ...
lessons learned …
 Strong commitment to their homeland (last but not least)
because of strong socio-cultural structures (  people came
back and adopted abroad learned technics …)
 These strong socio-cultural structures establishes a strong
feeling of togetherness (although SMEs are in competition …)
 Nevertheless people remained open-minded (… last but not
least because of the force to earn abroad …)
 Open-mindness resulted in the conviction that cooperation
is of mutual benefit
Werkraum Bregenzerwald ...
Conclusion …
An innovative climate (…) is the result of
 strong socio-cultural structures  “feeling of togetherness”
– even in the case of competition (common understanding of
tradition, heritage, importance of quality …)
 open-minded people (as a result of having the force to work abroad)
– resulting in a trans-sectoral cooperation
 existing “one´s own responsibility” (not to wait until someone
[e. g. state government, EC …] might help …)
Lauragais – Woad
(Isatis Tinctoria)
...
Lauragais …
Woad …
 … 2years plant
 growing in
Europe
 cultivated since
ancient times
 used to fabricate
indigo-blue colour
 the more you wash woad coloured clothes the more
intensive is the blue colour
Lauragais – Woad
(Isatis Tinctoria)
...
“regional” situation …
 In 16th century cultivation of “Färberwaid” founded the
wealth of the Lauragais Region ( today´s importance of Toulouse
as well as its architectural heritage is based on trade and business with
this plant)
 Because of chemical dyestuff and Indigo from the “New
World” “Färberwaid” fall more and more into oblivion
 Today “Färberwaid” is being rediscovered because of its
clear blue colour, its naturalness and its resistance
Lauragais – Woad
(Isatis Tinctoria)
...
economic situation …
 Toulouse is the region´s main center
(capital town of the
region Midi-Pyrénées, 770 T inhabitants, airbus industry …)
 In the surrounding area are a lot of SMEs in industry and
trade as well as agricultural companies
 These SMEs partly are not able to do RTD-work –
therefore they are supported by CATAR
 So far there is no cooperation between
different branches and companies
Lauragais – Woad
(Isatis Tinctoria)
...
what happens …
 Creation of an economic value-added-chain - starting
with basic research activities (how to cultivate and best reaping
the plant) till finding new markets for Woad as dyestuff (e.
g. Waid as colour in the automotive or aircraft - industry)
 Establishing an intra-regional network amongst different
branches and companies
 With that initiating different kinds of cooperation
Lauragais –Woad
(Isatis Tinctoria)
...
economic vallue added chain
Basic research –
e. g. how to
cultivate the plant
...
Plo = dyeing
factory
Textile Montagne
(tailoring)
producing woad
coloured yearn
producing blue
coloured dresses,
suits, working
clothes ...
CAPA =
agricultural
cooperative
society;
Grow the plant,
harvesting &
producing
Pigment
Bleu de Lectoure
Cosmetics ...
Lauragais –Woad
(Isatis Tinctoria)
...
lessons learned …
 The Lauragais area has a long lasting tradition in
cultivating woad (the area is also known as “Pays de cocagne” –
cockaigne – “Schlaraffenland”)
 remembering former prosperity was a kind of a startingsignal for common cooperative activities (participants see woad
as their natural heritage …)
 a common perspective for success initiated by visionary
people brought the process to work
Lauragais –Woad
(Isatis Tinctoria)
...
Conclusion …
An innovative climate (…) is the result of
 awareness of one´s own tradition
(knowledge about old technics,
about product advantages …)
 visionary people who have not been hindered in
implementing their ideas (support from different “regional-thinking”
people …)
 strong belief that the best support is by “just doing it” …
(this enabled the commitment to cooperation …)
SUMMARY ...
what we have seen so far …
Of (prior) importance for innovation in regional development
processes are the combination of
- socio-cultural structures who establish a
feeling of “togetherness” as well as the
awareness of one´s tradition (-al heritage)
- open minded people (visionary people) not
be hindered from politicians …
- diversified economic structure
- belief that “best support is supporting
yourself”
HINDERING FACTORS ...
Turn this into an opposite side …
Factors most probably hindering innovative processes …
 lack of incentives (or lack of boldness) to start
“traditional based” projects (e. g. because of too much large scale
companies employing huge portions of people …)
 mentality “we need support” from … (especially
in areas with former state owned industries – “industrial” museums,
tourist events based on old industry-activities … are hardly sustainable …)
 hindering visionary people (visionary people are important for
innovation – they have to be supported and not be hindered …)
HINDERING FACTORS ...
Lack of incentives …
 too much large scale companies employing huge portions of
people (most of the regional workforce are employed …)
 too much public founded money (…)
 companies acting as “extended workbench”
(“verlängerte
Werkbank” – main decisions are done outside the region)
 “monoculture” in the economic landscape (e. g. too less
industry, too less handcraft …)
HINDERING FACTORS ...
“wrong” mentality …
 too much public support (in most cases politically justified)
 projects mainly done by communities (innovation cannot be
“ordered” – the need of innovation has to emerge and recognized. This
happens on a larger scale in companies …)
 wrong understanding of “innovation”
(especially in the
tourism context – innovation is the combination of different packages and
not an isolated application)