Industrial districts and innovation: the case of the Spanish ceramic tiles industry

Abstract

This paper examines the case of the Spanish ceramic tiles industrial district, with special emphasis on collective knowledge creation and innovation processes. Following a brief review of the literature based on industrial district characteristics, a framework with which to guide the empirical research is presented. The framework includes a set of conditions under which knowledge flows across firms' boundaries and how institutions shape knowledge diffusion. These include: (1) firm attributes; (2) the role of local institutions; (3) the importance of the social context; (4) lack of legal protection for innovations; (5) knowledge transmission mechanisms; and (6) specific outcomes of the district. These conditions are illustrated by using a comparative study, of which the key findings are as follows. First, the Spanish ceramic tile industrial district is characterized by small-sized firms, specialization and important product and technological overlaps. Second, there is the important role played by institutions, including academic and research institutions, as well as the relevancy of the social context and the lack of patents and other legal rights. There is also an intensive use of knowledge transmission mechanisms, such as the creation of firms, human resource mobility and informal channels of communication and, finally, a specific district technology and common perception of markets.