The progressive model, an economic reconciliation process for regions in conflict

Abstract

PurposeThe main purpose of this paper is to propose a model of economic development able to generate a cross‐border sustainable economic development, in regions in conflict. The Italian industrial district model implements a community industry synergy process led by the authorities according to a top‐down approach. The cluster model implements a clustering specialization process led, in the American version, by a bottom‐up approach and in the European version by a top‐down approach. The regional innovation system (RIS) provides the regional and international innovation networking required for both models in order to confront the global competition. The proposed progressive model creates the industrial specialization (industrial district) required for the development of the clustering process supported by the RIS.Design/methodology/approachThe authors have selected, from the list of producers (growers and producers of olive oil), a random sample of 103 growers of olives and producers of olive oil from both groups from the Northern regions (Galilee in Israel and the Northern West Bank): 26 Palestinian growers, 25 Palestinian producers, 13 Israeli growers and 39 Israeli producers of olive oil, and interviewed them.FindingsThe results show that the community‐industry synergy of the industrial district model is supported by the economic actors from both sides of the border but refused for political reasons by the regional authorities and professional associations. The raw material (olives), the human capital and the knowledge required in order to start the clustering process exist.Practical implicationsThe study has evaluated the Israeli‐Jewish and Arab and the Palestinian olive sector, and clearly indicates that bottom‐up decision‐making process is the only way for the moment for initiating the cluster and RIS models in the olive sector. The intervention of a third party is required in order to start the bottom‐up implementation of the industrial district model and launch the clustering process.Originality/valueThe main contribution of this paper lies in organizing the industrial district in such a way that it will generate a cluster in the long run. Thus, it is called progressive model.

Enhancing the competitiveness of Palestinian SMEs through clustering

“…The minimum number of firms with common or overlapping needs to be acknowledged as a "cluster" is the number that attracts suppliers and specialized services and resources (Rosenfled, 2005). Bijaoui et al (2011) proposed 166 EMJB 9,2 a model of economic development to generate a cross-border sustainable economic development within the regions in conflict. The proposed progressive model creates the industrial specialization (industrial district) required for the development of the clustering processes supported by the regional innovation system.…”

Cross-border regional innovation systems: conceptual backgrounds, empirical evidence and policy implications

“…Accordingly, the discussion of related variety, while conceptually alluring, is hard to pinpoint empirically, and has yet to be verified empirically in the context of CBRIS. Consequently, the empirical literature on CBRIS has concentrated on studying a single, or few types of, proximity including cognitive distance (Makkonen, 2015), geographical proximity or physical barriers (Bijaoui et al, 2011;Hansen, 2013;Kiryushin et al, 2013) and institutional gaps (van den Broek & Smulders, 2014;. What is noticeable, is that in the early literature on CBRIS, the empirical validations of proximity in CBR were actually more diverse and ambitious than they have been recently (Appendix 1).…”

“…Still, empirically the concept has been approached precisely through single industry case studies. These range from the more general manufacturing and business service sectors (Koschatzky, 2000;Lundquist & Winther, 2006) into specific high-tech fields of bio-and cleantechnology (Coenen et al, 2004;Hansen, 2013;Kiryushin et al, 2013) and low-tech fields of horticulture (van den Broek & Smulders, 2014; and the olive oil industry (Bijaoui et al, 2011). However, as a positive note, the analysis and discussion in these studies has commonly included both private and the public sector figures and viewpoints.…”

“…Jauhiainen (2014) has subsequently summarised some of the key issues of CBRIS in a policy briefing. Following the conceptual literature, CBRIS have also been used as an analytical framework in various empirical studies (Bijaoui, Sultan, & Tarba, 2011;Hansen, 2013;Kiryushin et al, 2013;van den Broek & Smulders, 2014;Makkonen, 2015).…”