The integration of the Basque machine tool cluster into GVCs

Abstract

Purpose This paper aims to analyze how integration into global value chains has impacted the evolution of the Basque machine tool cluster from the 1990s to the present day. Design/methodology/approach The study was carried out in three steps. First, a comparative analysis was made of the renewal process of the 1990s and the current situation. Next, a quantitative analysis was undertaken to test whether the cluster has entered a new maturity period, and finally, qualitative data was gathered about the past and present challenges facing the companies in the cluster. Findings The empirical evidence of the present study shows that integration into global value chains has led to a hierarchization of the strategic trajectories and performances of the companies in the cluster. Additionally, evidence of a sustained period of new maturity and decline has been observed. The period of maturity and foreseeable challenges of the coming years were mentioned repeatedly during the interviews. Research limitations/implications Although the participants in the interviews were relevant individuals with a broad view of the cluster’s situation, their limited number and the lack of representation of companies that closed down during the renewal process, despite the efforts made by the authors, could be considered a limitation. Practical implications This paper sheds some light on the renewal/transformation period facing the cluster. Several of the main challenges and two extreme, hypothetical scenarios are discussed. The companies in the cluster will have to establish a position somewhere between those two scenarios. Social implications This paper presents two possible cluster transformation scenarios. The authors offer suggestions as to how to go about transforming the cluster with a view to secure a better position for dealing with future challenges. Originality/value Using quantitative and qualitative data, the paper reflects on the hierarchization and decline of the Basque machine tool cluster and provides new insight into the transformation and renewal needs of the cluster in a globally competitive environment.

Innovation in Micro Firms Builders of Machine Tool? Effects of T-KIBS on technological and non-technological innovations

“…First, our findings suggest that the very small size of a manufacturer and its specialization in a domestic market niche (Rizzi et al, 2012;Valdaliso, 2020) gives it few incentives to internationalize and generate new knowledge. Therefore, micro firms need to enhance their absorptive capacity (Ciriaci et al, 2015;Chen, 2009) by increasing ICT and R&D investments (Baumann & Kritikos, 2016;Bustinza et al, 2019), given the fact that the industry is beginning to incorporate more and more codified science-based knowledge (CECIMO, 2011;European Commission, 2012), and it needs to undergo a renewal or transformation process (Zubiaurre, Sisti, & Retegi 2020) to confront the challenges of Industry 4.0 (Bustinza et al, 2021;Propris & Bailey, 2020;Vaillant et al, 2021). In this sense, micro firms should improve their R&D capabilities (García-Quevedo et al, 2013;Bustinza et al, 2019), and especially their ICT capacity (Vaillant et al, 2021).…”

“…In fact, it is important for regional and local governments to consider integrating KIBS into manufacturing clusters when designing industrial policies (Vendrell-Herrero & Wilson, 2017). This is especially important because these relationships can help to build a process of territorial servitization (Lafuente et al, 2019) that includes the machine tool industry (Valdaliso, 2020;Zubiaurre et al, 2020).…”

Guest editorial

“…The sixth paper, "The integration of the Basque Machine Tool Cluster into GVCs", by Zubiaurre et al (2020), concerns the relationship between cluster firms and Global Value Chains. The authors aim to analyze how the machine tool cluster in the Basque country (Spain) coevolved together with the global value chains it was integrated into in the 1990s.…”