Health Policy and High-Tech Industrial Development

Health Policy and High-Tech Industrial Development

Learning from Innovation in the Health Industry

Edited by Marco R. Di Tommaso and Stuart O. Schweitzer

By weaving together the fields of health economics, industrial organisation and industrial development, this book describes the benefits of promoting a country’s health industry as a way of stimulating its high-technology industrial capacity. The authors illustrate that the development of a country’s health industry not only improves the country’s health status, but also promotes an industry with relatively stable, high-wage employment, creates the potential for exporting goods and services, and produces scientific spillovers that will favourably impact other high-technology industries.

Chapter 11: Multinational Enterprises and High-Tech Clusters in the Health Industry: Some Preliminary Results in Italy

Marco Bellandi and Nicoletta Tessieri

Subjects: economics and finance, health policy and economics, industrial economics, social policy and sociology, health policy and economics


Marco Bellandi and Nicoletta Tessieri 1 INTRODUCTION1 The success of modern industrial districts, in Italy and elsewhere, represents a clear manifestation of the forces of local development. The industrial districts are prototypical examples of localities (the territorial level is that of daily urban systems) characterized by the economic and social prominence of an industrial cluster of specialized small to medium-sized firms. Within an industrial district, the principal industrial cluster corresponds, in statistical terms, to the aggregation of the most important manufacturing sector of the area and of complementary and auxiliary sectors. Generally the relations between large firms and the development of industrial districts are various, positive or negative, sometimes relevant. Of course their nature depends also on socioeconomic and institutional factors at regional, national and international levels. As regards the large firms, and specifically multinational companies, there are three different strategies. The first is a strategy of vertical integration in the constitution of human capital, marketing channels, R&D facilities, taking basic resources from the outside and transforming them into specific assets. The second is a networking strategy, in which the internal processes are complemented by the relation with external processes, both in other large firms (joint ventures and so on) and in industrial districts. The last is a predatory strategy, by which external processes are exploited for incorporating valuable external resources and destroying the economic bases of independent districts. In the first case, localization matters because of the territorial differences in the prices of non-transferable...

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