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Production supply chains strengthened by networks.

Regional production is becoming increasingly more structured and organized into production supply chains using various means to coordinate the relationships between customers and suppliers. As well as acting as suppliers, relations between businesses can take the form of actual networks. When companies form part of a single group with a controlling interest, they are known as internal networks. Alternatively, external networks can be established by setting up partnership agreements or through joint acquisitions, creating such entities as consortiums and joint ventures. A new piece of national legislation, the network contract (Act/2009), offers another method of coordination.

Around 20,000 businesses in Emilia-Romagna are organized into groups. Although they constitute only 5% of the regional total, they carry considerable economic weight, contributing a third of added value. These groups also play an international role as the source of both internal and external direct foreign investment.

The innovation sector is also grouped into networks. The European Regional Development Fund (ROP – Axis 1 and 2) is funding collaborative research and projects for the creation of business networks in the region for technological and organizational innovation of SMEs. The 10 technopolises planned for the region, made up of46 laboratories and 7 centres of innovation will be specializing in the main regional supply-chain sectors. The most recent R2B (Research to Business) fair, which took place in November, continued to highlight the work of numerous regional laboratories and research institutes working together to form networks with systems of production.

R2B also included “IS Bologna”, a merger of small and medium-sized enterprises linked to the mechanics supply chain, promoted by UNINDUSTRIA business association. But the ability of SMEs to work well together is a key strength of each regional supply chain.

Sources: “Networks, mergers and supply chains” 13/11/09; ERVET; ERMES Imprese.

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