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Vermelding onderdeel organisatie September 9, 2013 1 SPM9539: Economy, Ecology and Technology of Networked Industrial Complexes Week 1 – course 1: course introduction From Analysis to Shaping Industrial Clusters Dr.ir. Gerard P.J. Dijkema Associate Professor TBM a.3.260 [email protected] Faculty of Technology, Policy and Management Energy & Industry Group Source: http://www.wereldhavendagen.nl/programma/bekijk-160-000-km-pijpleiding/

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Page 1: SPM9539: Economy, Ecology and Technology of Networked ... · SPM9539: Economy, Ecology and Technology of Networked Industrial Complexes Week 1 – course 1: course introduction From

Vermelding onderdeel organisatie

September 9, 2013

1

SPM9539: Economy, Ecology and Technology of Networked Industrial Complexes

Week 1 – course 1: course introduction

From Analysis to Shaping Industrial Clusters

Dr.ir. Gerard P.J. DijkemaAssociate Professor

TBM [email protected]

Faculty of Technology, Policy and Management Energy & Industry Group

Source: http://www.wereldhavendagen.nl/programma/bekijk-160-000-km-pijpleiding/

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September 9, 2013 2

The object of this course

• Understanding / shaping industrial networks• Using a variety of perspectives

• Core perspective: industrial or business cluster

• What is it?

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September 9, 2013 3

“A business cluster is a geographic concentration of interconnected businesses, suppliers, and associated

institutions in a particular field.”http://en.wikipedia.org/wiki/Business_cluster

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September 9, 2013 4

Source: http://www.incontext.indiana.edu/2004/sep-oct04/news.asp/

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September 9, 2013 5

Course objectives

Students learn to:

1. Understand and apply system theory and system analysis tools on the performance, evolution, dynamics and development of large-scale industrial complexes or business clusters

2. Understand and apply theories on innovation, economics and ecology of global business and their implications for specific industrial markets, industrial sites and transition.

3. Analyse and understand the role of various stakeholders involved in the transition management, and to synthesize and operationalise economic, technology and policy-oriented theories, methods and tools.

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September 9, 2013 6

Course agenda• Lectures (subject to change)

• Literature and Assignments• each week 2-3 scientific papers to read and digest• each week an individual assignment to be completed

Week Subject Case-examples1 Introduction: cluster views Various2 Cluster Economy and Typology Westland3 Location Factors & Site selection Rotterdam4 Industrial Parks and Eco-Industrial Parks in China TEDA, DDA5 Stakeholders, Institutions & Regulatory Regimes Westland vs. CostaDue6 Industrial Ecology - Bringing Clusters into Being Kalundborg vs. Dinteloord7 Action-Oriented Industrial Ecology MVII and CostaDue8 Transition management Paper and Board

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September 9, 2013 7

The assignments during the course

During this course you will complete one assignment each week; together, these will provide a basis for the final written report. These assignments will help you:

• Understand the implications of theories discussed.• Formulate a personal view on networked industrial development.• Understand the problems that are encountered when various

viewpoints ‘collide’.• Find viewpoints other than those discussed in class in the

available, reputable literature.

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September 9, 2013 8

Assignment 1• Choose a particular ‘type’ of industry or cluster and a ‘locale’.

• Do you have access to sufficient information on this industry/locale??

• Create a first image/ systemic description of your cluster by answering these questions• What kind of companies are part of this cluster (construction, production,

research & development, engineering & consultancy services, transport, financing, marketing etc.)

• What are the characteristics of this industry? (physical, economic, technological, knowledge, other)

• What phase is this cluster in (initial, booming, mature, decline)?• Boundary of your cluster (geographic, activity, other)

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September 9, 2013 9

Assignment 1 (continued)• Choose a particular ‘type’ of industry or cluster and a ‘locale’.

• Find three distinct definitions of a cluster in the scientific literature (beyond the definition cited from Wikipedia) and make a choice for the ‘best’ definition for your particular chosen industry. Could you improve the definition for your industry of choice?

• What characteristics of the chosen industry/locale are interesting with respect to options for (regional) clustering?

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Industrial clusters / localesExamples

• Agro-Food Industry – NL• Food Valley – Wageningen NL• Flower Sector Greenhouse

horticulture- NL• Flower Sector Greenhouse

horticulture- NL• Sake Industry, Japan

• Offshore Industry – NL• Container Transhipment – R’dam • High Tech (electronics?) – Eindhoven

NL

• Lindholm Science Park – Goteborg, SE• Leiden Bioscience Park, NL

• Petrochemicals – R’dam,Singapore, Norway

• Biomass/Bioproducts Eemsdelta – NL

• EnergyValley – NL• Natural Gas Industry – NL• Renewable Energy Cluster – Colorado,

US• Solar Energy – Spain, NL• Wind Energy – NL, DK

• Waste & Recycling sector, NL

September 9, 2013 10

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Industrial clusters / locales2012• Motorcycle Industry, Catalonia, Spain• Coffee Industry Daklak, Vietnam

• Agro-Food Industry, Gelderland, NL• Offshore Industry – Singapore,

Indonesia• Maritime Cluster, NL• Rotterdam Container Port – NL • Groningen Seaports, NL

• Fibre reinforced composites, NL

• Technopolis, Delft, NL• Leiden Bioscience Park, NL (2)• New Anglia Partnership, UK

• Petrochemicals – R’dam (2)• Cubatao Industrial Cluster, Brazil• Houston Oil and Gas, US• Houston Petroleum, US• Petrochemical Cluster Part, Iran• Chemical Complex Tarragona, Spain

• Paper and Board Industry, Norway• Bioethanol clustrer, Brazil• Wood pellet, Ontario, Canada• Biogas cluster – NL

• Shanghai Baoshan Industrial Zone, China

• CSP in the US• Solar Valley Mittel-Deutschland• Wind Energy – DK

September 9, 2013 11

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Clusters, complexes – why care?

September 9, 2013 12

Source: http://www.muscogeemoms.com/2013/04/24/quiz-

bowl-activ8-camp/question-mark/

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Clusters, complexes – why care?

September 9, 2013 13

Source: http://www.icic.org/ee_uploads/images/industrial_employment.jpg

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Clusters, complexes – why care?

September 9, 2013 14

http://www.youtube.com/watch?v=UzTWiqF5bYI

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September 9, 2013 15

Production factors are local, competition is global

Survival, prosperity requires leveraging the combination

of

local resources, infrastructure

knowledge

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September 9, 2013 16

System analysis in networks• Current Performance:

Input/output analysis:• Mass balance.• Energy balance.• Money input / output.• Human resources.

• Current Structure• Participants, roles• Network structure• Types of relationships• Formal and informal power / authority• Character and Culture

Surroundings

System

A chemical Cluster

Feedstock

Products

Inve

stm

ent &

Ope

ratin

g C

ost

Rev

enue

sS

alar

ies

Emissions

Ski

lled

Labo

ur

Utilities

Was

teK

now

-how

G.P.J. Dijkema, Process System Innovation by Design, 2004

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September 9, 2013 17

Designing or shaping networks?

• Design / Development / Shaping / EvolutionAttention for:• Design of what?• How to change structure and content• Strategies for growth and

competitiveness?• Path dependence and lock-in effects.• (Im)possibilities for future

development.• Possible supply chain integration &

extension.

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September 9, 2013 18

Theoretical background

Development, management and evolution of industrial regions can be viewed from various perspectives:• Regional economics.• Industrial ecology.• ‘Traditional’ cluster perspective (Porter).• Location theory (Witlox).• Clusters as Socio-Technical Systems (Complex Adaptive Systems)

• Business Economics perspective (individual companies).

These points will be discussed throughout the course. You will be asked to read articles and comment on them!

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September 9, 2013 19

Stakeholder background

• WHO play a role in the development of networked industries?

• WHAT are the positions of the various identifiable actor positions?

• HOW can this be used to influence the structure or design, development or operational management of networked industries?

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September 9, 2013 20

Industrial region interaction

Companies:Investments,Jobs, …Universities:Research, …

Policy interaction:National Legislature,European Union,Trade agreements(GATT, WTO) etc.

Industrial Region

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September 9, 2013 21

Industrial region interaction

Types of industrial regions:

• Pure agglomeration (The average company park).• Industrial complex (Chemical industry in Rotterdam).• Social network (Silicon valley).

Companies:Investments,Jobs, …Universities:Research, …

Policy interaction:National Legislature,European Union,Trade agreements(GATT, WTO)

Industrial Region

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September 9, 2013 22

Industrial region interaction

Key characteristics (dominant internal relationships):

• Pure agglomeration : none.• Industrial complex : materials• Social network : information.

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September 9, 2013 23

Industrial region: structure• Industrial facilities

Company A

Company B

Company CIndustrial Region

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September 9, 2013 24

Industrial region: structure

Company A

Company B

Company CIndustrial Region

Company D

• Industrial facilities• Connected by physical infrastructure

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September 9, 2013 25

Industrial region: Socio-Technic View

Physical Network Actor Network

Socio-Technical Network

Physical Network Actor Network

everything is connected

• Industrial / Production facilities• Connected by physical infrastructure• Evolves because of DECISIONS made by actors

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September 9, 2013 26

Industrial region: Socio-Technic View

Economic EnvironmentEcologic Environment

Physical Network Actor Network

Socio-Technical Network

Physical Network Actor Network

• Evolves because of DECISIONS made by actors• Actors respond to external change

everything is connected

G.P.J. Dijkema, IEEE SoSE, 2007; Adapted from I. Bouwmans

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September 9, 2013 27

Industrial region: Socio-Technic View

Economic EnvironmentEcologic Environment

Physical Network Actor Network

Socio-Technical Network

Physical Network Actor Network

• Evolves because of DECISIONS made• In response external change

everything is connected

Regulatory Environment

G.P.J. Dijkema, IEEE SoSE, 2007; Adapted from I. Bouwmans

Institutions

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September 9, 2013 28

Industrial region: Socio-Technic View

Economic EnvironmentEcologic Environment

Physical Network Actor Network

Socio-Technical Network

Physical Network Actor Network

• Evolves because of DECISIONS made• In response external change

everything is connected

Regulatory Environment

G.P.J. Dijkema, IEEE SoSE, 2007; Adapted from I. Bouwmans

Institutions

Technology Options

Innovation

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September 9, 2013 29

socio-technical systems view

External World

Technical Network Social Network

Material / Energy / Data Exchange

Social & Economic Transactions

Operation

Ownership

Development

Culture <Institutions> Regulatory Regime

Decisions on:

G.P.J. Dijkema and L. Basson, J. Ind. Ecology, 13, 2009, p.157

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September 9, 2013 30

Industrial region: structure

Industrial Region

Internal aspects that may influence structure:• (Size and number of) existing companies:

• Is there one large company?• Are they aware of the cluster? • Do they care?

• Physical geography (geographic characteristics):• Near river / sea?• Flat or mountainous?

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September 9, 2013 31

Importance of networked industriesIn Technical and Social Network

• Regional importance:• Reinforces regional economy?• More jobs?• Attractive investment climate?• Comparative advantages?

• Business importance:• Exchange of by-products, energy, waste• Increased (sustainable) competitive advantage?• Faster product development & innovation?• More sustainable production?

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September 9, 2013 32

Networked industries perspective

Different approaches:• Types of clusters.• Stakeholders.• Regulatory regimes.• Theories.

Course focus by:• Pre-selecting cluster types.• 2 stakeholders perspectives.• “Dutch” regulatory regime• Selection of applied theories.

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September 9, 2013 33

Perspectives: Regional Development Agency (RDA)

• Concerned with (long term) prosperity of the region.• Should focus on issues as:

• Regional competitiveness• Job security• Environmental issues• Infrastructure investments

• Implements the regulatory framework• Could be in charge of attracting new industry…

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September 9, 2013 34

Perspectives: Company

• Primarily concerned with long term continuity of it’s (economic) activities.

• Focuses on getting a sustainable competitive advantage:• Chooses the best (geographical) location to invest.• Searches for an environment that enhances

innovation.• Can have the means to invest in a region, thereby

enhances the economy of that region.

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September 9, 2013 35

Company perspectiveInteraction: 3 Layer Model

Long terminvestment decisionproduct / capacity

portfolio

Short termsupply/demand

feedstock / product markets

product deliveryplant operation

E.J.L. Chappin and G.P.J. Dijkema, IEEE SoSE, 2007

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September 9, 2013 36

Cluster = a network

• Links• What is exchanged?• What types of links?

• Nodes• What (type) of activities• or What roles

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September 9, 2013 37

Cluster = a network• Links

• What is exchanged? • tangible: materials, goods, energy, money• intangible: services, information, knowledge, money

• What types of links?• physical• social (contractual, membership, your ‘network’

• Nodes• What (type) of activities

• an ecosystem with niches!• primary producers, secondary, service companies, market

• or What roles• producer, knowledge provider, decision-maker, service

company, machine manufacturer, EPC company, infrastructure etc.

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September 9, 2013 38

Distinct types of clusters

• Pure agglomeration. • Company park.• Shopping mall.

• Industrial complex.• Base (petro) chemical production sites (Rotterdam, Delfzijl,

DSM).• Industrial steel producers (Hoogovens, metal park Delfzijl).

• Social network.• Bioscience park (Leiden).• Electronics development (Philips labs High Tech Campus).

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September 9, 2013 39

Example of chemical cluster

Source: www.chemiepark.nl

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September 9, 2013 40

Example of metals cluster

Source: http://www.antheus.nl

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September 9, 2013 41

Specific characteristics of clusters

Source: IBR 11 (2002), p. 650.