Production networks in the cultural and creative sector: case studies from the artistic crafts industry
Creators: name: Inno, Paolo
name: Henriksson, Tove
name: Greco, Lidia
name: D'Ovidio, Marianna
Publisher: name: Zenodo
Year: 2023
Subjects: Global production network (GPN), creative and cultural sector (CCS), artistic craft, traditional craft, craft manufacturing, leisure boat industry, glass making

description: The CICERONE project consists of seven work packages (WPs). This report is part of WP2, which constitutes the empirical backbone of the project. WP2 contains case study research that focuses on networked production in eight cultural and creative industries: 1) architecture, 2) archives (including libraries and cultural heritage), 3) artistic crafts, 4) audio-visual media (film, TV, videogames, multimedia) and radio, 5) design, 6) festivals, as well as performing and visual arts, 7) music and, 8) publishing. The purpose of the case study research is to understand key linkages and mechanisms within real-life production networks in the cultural and creative sector (CCS) and the relationships of these networks to context-dependent variables. Drawing on the case study research, the CICERONE project explores a policy framework that may contribute to enhancing policy support for the cultural and creative sectors. Further- more, the case study research facilitates the identification of gaps in extant sources of quantitative data, suggesting approaches on how these gaps can be plugged. For this reason, WP2 is not just the empirical backbone of CICERONE, it also provides critical inputs for the work in other WPs (most notably WP4 and WP6). This deliverable (D2.3) reports on the case studies on the artistic crafts industry. Together with the reports D2.1, D2.2, D2.4 to D2.8, it provides strategic snapshots of the rich and variegated tapestry of European production networks in the CCS. In the context of the European CCS, craft undoubtedly represents a unique case. The industry is of high relevance for the EU, not only at the economic level but also at the social and cultural levels. Craft represents one of the most significant activities for the EU’s economy, accounting for approximately 8.6 million enterprises, which represents 37.2% of the total population of the EU’s non-financial business economy; at the social and cultural levels, there is no doubt that the industry – due to its deep-rooted tradition in most of EU Member States – plays a key-role in forging the rich and diverse European cultural identity. In recent years, craft has experienced a substantial rediscovery, both as an economic and commercial industry. Although collocated in an extremely fluid global economy, these activities maintain a special relation with the place where crafted products are created and are often indicated as drivers of local development and urban regeneration. According to some scholars, craft represents a response to the challenges of globalisation because it constitutes a local, human, and sustainable alternative to large-scale manufacturing production, which is able to sustain lean, flexible, high-quality, and innovative production. The interest of EU institutions in this industry has been confirmed by several projects funded under various research programmes, which have investigated the issues related to competitiveness, skills and education, innovation, and digital transformations that affect craft activities. Among these projects, the CICERONE project adopts the GPN approach and the case study methodology to examine the spatial and governance configurations of the craft industry. Approaching the craft industry with the GPN methodology means accounting for the whole production network of the industry. What the GPN approach makes clear is that artisanal goods are the result of cooperation among various actors – sometimes located in dispersed territories – who contribute to creating and enhancing the value incorporated into the final product. In this report, three different production networks of crafts in two different countries of the EU – namely Italy and Sweden – are investigated. To set the scene for these case studies, an in-depth literature review into the conditions of the European craft industry is conducted, which provides a comprehensive view of the contemporary European craft industry. The literature review also helps to identify the governance models of the craft industry, which provides the background for selecting the cases. Craft as a CCS represents a wide range of activities, where smaller batches of highly skilled production, deep knowledge of materials, tradition, and artistic intent are the basis of the value of the produced goods – often produced by self-employed craftspeople or in smaller firms. The literature review aims to unpack this complexity and present a framework for understanding crafts and artisanal production. The first part of the literature review unpacks the nature of crafted goods, which due to the breadth of the industry (including activities ranging from ceramics, wood working, and smithing to luxury artisanal production and smaller industrial production) makes the industry complex and difficult to define. Building on this discussion, we present the varied labour conditions of contemporary craftspeople as well as the skills necessary for operating within the industry. The conditions for working and operating craft activities are influenced by local, national, and European-level policies, which are discussed from the perspective of a small and medium-sized business as well as that of initiatives directly targeted towards craft activities. Due to the lack of a shared, formal definition of what a craft enterprise is at the EU level, the policy framework for the craft industry is constituted by policies directed to micro, small, and medium-sized enterprises; more specific and tailored policies are designed and adopted at national and local levels. The policy interventions as well as the understanding of what craft entails differ between European countries, where tradition and local embeddedness can shape the structure of the industry. Basing our understanding on the literature review, we are able to produce an input–output structure of the industry and identify five different models of governance for how craft products are made, moving from creation to a final consumer. The models of governance feed into our choices of case studies, which represent three of the models. The first case study is on Prisma, an Italian artisanal luxury yacht manufacturer located in Liguria and Tuscany. Here, craft is observed within a broader production network, illustrating in which ways it can contribute to luxury production. This project reflects the production network governance model. The second case study is on Konsthantverkarna, a membership-based organisation that gathers approximately 90 artisans using different materials and from different parts of Sweden. The case is chosen as it is an organisation of 90 independent artisans who follow the market governance model. The third case study is on a traditional glass manufacturing site located in a cluster of glass activities in southern Sweden. It reflects the vertically integrated governance model. Through case-study research, with a main emphasis on qualitative interviews, we unpack the production networks of each case, highlighting the relationships between actors and the power relationships between them, as well as the embeddedness of the cases towards various institutions, networks, and places. Through this analysis and the application of the GPN approach, we present key research results and policy implications. First, the research highlights that craft activities produce crucial economic and (especially) social tangible and intangible impacts – among which are the contribution to local development, particularly in rural regions; the activation of complementary industries such as tourism; and the nurture of both local and European collective identity. Second, unveiling the geographical reach of the craft networks investigated, the research highlights the geographical embeddedness of knowledge and skills, where areas that contain these artisanal clusters have over decades, and even centuries, developed infrastructure, educational institutions, and local know-how that anchor these industries in one place, where they are difficult to substitute to other regions. Third, despite its variety in terms of possible business models and the new sectoral trends, evidence from the research points to the continued relevance of the traditional mechanisms of reputation and trust that characterise the various business practices – and which seem to qualify all of the phases along the production networks. The research has nonetheless raised several critical points, which are relevant to policy makers. First, although artisans and craft enterprises are generally indicated to be key actors for value creation and the realisation of high-quality products, they do not seem to harvest adequate material and symbolic compensation for their work. Even in the context of horizontal or multiple-actor networks, artisans and craft enterprises seem to be the weakest nodes of the production network. This is particularly true when considering the role and function of second-tier suppliers – whose conditions raise serious concerns in terms of working conditions and rights – and of self-employed craftspeople – who seem to be exposed to self-exploitative tendencies. Second, due to their participation in extra-local production networks, artisans are exposed to new competitive pressures, accelerated by the presence of global competitors and the transformations ongoing throughout the industry. Among these transformations, sustainability plays a critical role – seemingly constituting the new cleavage around which lies the competitive equilibrium upon which the next few years will be built. To remain competitive and sustainable, craftspeople and craft enterprises demand more adequate and tailored policy actions. Third, artisans and craft enterprises need substantial interventions in the fields of employment, grants, and training/skills; enterprises blame excessive tax burdens on labour and demand more attention to the recruitment of new generations of artisans. Fourth, the absence of policies that promote the protection and reproduction of the unique skills and know-how that characterise the craft industry – especially in niche production and traditional or artistic crafts – exposes the whole industry to the loss of competences and talents that are almost impossible to replace. This makes the craft industry susceptible to crises in ways that other manufacturing industrys are not.