This case study examines the creation of a cluster in Macael, Spain focused on building materials, ceramics, and ornamental products.
[1] Originally, the local marble industry was small-scale and informal with low productivity, relying only on the national market. [2] However, research found Macael's white marble was highly durable and of exceptional quality, indicating potential. [3] An action plan was implemented to introduce new infrastructure, institutions like marketing cooperatives, and attract private investment to modernize extraction and finishing processes.
4. Marble local economy
in the 80s
Transformation
Extraction
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Small scale
Dynamite
Quarries
boundaries
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Informal institutions
-Passive/static
-Mistrust/individualistic
-Resistance changes
Product of low value
added
No uniform product
No capacity to attend
large orders
Narrow line of
artisanal products
-Low productivity
-High transaction costs
-Low competitivenes
-Value added goes outside
-Low level of technology
Comercialisation
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No commercialisation
efforts
National market
Low integration with
global value chains
Formal institutions
-No services
-Short credits
5. Marble as a natural
resource asset
• A research found
Macael white marble was
the most plentiful in Spain
and more durable than
Carrara’s and
exceptional high quality.
• It should strive to become
a formidable competitor in
the national and
European marble industry
6. Introducing change
Step 1:negotiating and action plan
and Envisioning the future
Step 3:planning firm investments
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Institutional commitment
Formation subcommitees
Reseach and studies
Action plan
Shares vision of the future, Carrara
as a role model
Step 2:Building infrastructure
/institutions
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Building infrastructure (electricity,
roads…)
Creation of formal institutions:
purchasing cooperative, and joint
sales cooperative
Creation of a brand name
Investment plan to attract finance from
private institutions
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Research about Macael firms industrial
processes (product lines, output quality, laes
capacity. Skills.
Plan to introduce technology based on existing
capacities and future role of the firm
Step 4:Mobilizing resources
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Public subsidies through GAEIA fund
Private loans
Institutional marketing among elite and
public opinon (Presmios de Mármol)
Invitation of decison makers tomake visits
Publitize the sucess of the action plan
8. Outcomes
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Mechanisation, larger marble blocks and high quality finished
product
Rationalisation of the exploitations
Growth of artisanal sector, and intermediate industry and service
sector
397 firms and 5.471 workers. (195 in the sector and 202 auxiliary
sector). Between 1996-2000 creation of 55 new firms, some of the
them high technological firms.
Center of Stone Technology: R&D
Added value remained in the area
Exports from 14,1 millions € in 1998 to 57,2 millions of € in 2003.
67,2% USA and importing marble form Turkey, Italy and Portugal
(from 1.250 in 1997 to 31.657 in 2003)
10. Conclusion
• Based on quality competition and specialisation
• Firms in network with firms/Competition with
collaboration
• Role of public and private institutions (formal
and informal)
• Territorial competitiveness based on
agglomeration of activities/complement (they
cover all value chain)
• Strategic government policy
• http://www.youtube.com/watch?v=VHWzYaHmiis#t=47
Editor's Notes
Mapa y grafico de barras Spain is one of the main producer of piedra ornamental; marmol y caliza in the world, in 2009 it was 7th position in the world with 6,7% of total production. It has 466 quarries and 63 varieties of marble
Graph 2 Almería which is the province where is Macael, Almeria is a desertic region, it main resources are the agriculture, tourism (at the coast area) and marble. It is an adverse environment for firms because it is far away (periphery position) from the areas of dense economic activity of the country. Yet It produce the 42% of volume of extraction. The graph shows the weight of the provinces. The green is Almería.
Mapa de la comarca: La Comarca del marmol in Almeria is a rural area of 800 square meters, with 14 towns and a population of 43. 000
Macael, Olula del Río, Fines, Cantoria, Lijar and Purchena are the main towns.
It was a factor driven stage: firms were competing on the basis price and selling the basic product, to a regional moderate demand.
On the demand side: the lack of local demand greatly inhibited firms growth and was severe growth and performance constraint.
On the supply side:
-Low productivity
-High transaction costs
-Low competitivenes
-Value added goes outside
-Low level of technology
Local business enviroment lack the basic infrastructure and Industry-specific institutions (electricity supply, regulatory environment…) and informal institutions (mistrust, static) and lack of associational capacity of the firms
As a consequence less and less revenues and area losing population. Little capacity to adapt to economic change, as well as to improve resistance to negative sectorial shock.
Porter 4 factors of competitiveness (demand, competition among firms and complemetaries industryes or factor endowmen. In this case the key factpr as the 4th factor, “availability of natural resources”. Availability, durable but most important exceptional quality. It was a territorial advantage
In 1982 decentralisation process in Spain (administrative and political, still little fiscal): the regional government assumed the leading role on local economic development of the area to pass from a factor driven stage to a efficiency driven stage marked by a production process based on efficiency and product quality. The key issue is how to differenciate their products and how to raise the national and international demand
Essential for growth is the capacity to develop new competitive advantages.
Two factors:
•Market access: getting access to production network. Getting access to market implies either participating in existing chains, constructing new ones, or reconfiguring other chains. In all cases it involves the coordination and co-action of various public and private sectors. It can tigger endogenous regional development.
•Infrastructure: creating industry-specific infrastructure
Principal actors: business aso. Local of macale, regional gover (IPIA), Rafael Escribano,the provincial mining official
the actors involved in the plan.
The regional government as the key actor:
1.Service delivery, source of economic opportunity through local spending
2. Intervened to define local public interest and the broad direction of LED.
3. Enable or facilitate other actors to make a more efficient contribution toward solving LED problems
The regional government did not have the resources but had the “capacity”: a combination of internal coherence and external connectedness which can be called embedded autonomy.
Also persuation and political ability to mobilise resouces.
Innovative arrangements including vertical pacts between local government and national agencies as well as agreements with private sector organisations around the marble sector of macale (multistakeholder initiatives)
Specialisation among local producers, created internal economies of scale, generate increasing returns and enhances competitive position. They operate as a group in particular production, processing or marketing activities. Tigger related and supporting industries.
Import/export port trade