Between Luminaires and Meat Grinders: International Trade Fairs as Temporary Clusters

Abstract

Bathelt H. and Schuldt N. Between luminaires and meat grinders: international trade fairs as temporary clusters, Regional Studies. This paper claims that international trade fairs, viewed as temporary clusters, are important events that support economic processes of interactive learning and knowledge creation. In such settings, geographical proximity and face-to-face contact enable actors from different countries to exchange information about markets, products and innovations. The variety of planned and unplanned meetings and the rich ecology of information flows and different forms of interaction create ‘global buzz’. Firms use such events to consciously establish ‘pipelines’ with new business partners worldwide. The paper will present empirical evidence from two flagship fairs held in Frankfurt/Main, Germany, to support these claims.

Bathelt H. et Schuldt N. Soit magasin de luminaires, soit hachoirs de viande: les foires commerciales internationales comme grappes temporaires, Regional Studies. Cet article cherche à affirmer que les foires commerciales internationales, considérées comme grappes temporaires sont des événements qui soutiennent les processus économiques en faveur de l'apprentissage interactif et de la création de la connaissance. Dans de tels contextes, la proximité géographique et le face-à-face permettent aux agents en provenance des différents pays d'échanger des informations sur les marchés, les produits et les innovations. La variété de réunions prévues et imprévues et le riche mélange de flux d'informations et de différentes formes d'interaction font ‘vrombir’ sur le plan mondial. Les entreprises se servent de tels événements afin d'établir consciemment des ‘pipelines’ avec de nouveaux partenaires commerciaux dans le monde entier. Pour soutenir ces affirmations, l'article présente des preuves empiriques auprès de deux foires vedettes qui ont lieu à Francfort, en Allemagne.

Grappes temporaires Foires commerciales internationales Vrombissement mondial Etablissement des pipelines Création de la connaissance Face-à-face

Bathelt H. und Schuldt N. Zwischen Designerleuchten und Fleischwölfen: Internationale Messeveranstaltungen als temporäre Cluster, Regional Studies. Der Beitrag betrachtet internationale Messeveranstaltungen als temporäre Cluster und argumentiert, dass diese Veranstaltungen in substanzieller Weise Prozesse des interaktiven Lernens und der Wissensgenerierung von Unternehmen unterstützen. Die vorhandene räumliche Nähe und Vielzahl der Face-to-Face-Kontakte zwischen Ausstellern, Besuchern und Multiplikatoren aus vielen Teilen der Welt ermöglichen auf Messen in konzentrierter Form den Austausch von Informationen über Märkte, Produkte und Innovationen. Die Vielschichtigkeit geplanter und ungeplanter Treffen mit unterschiedlichen Akteuren, die dichte Informationsökologie und verschiedene Formen der Interaktion generieren den sog. ‘Global Buzz’. Unternehmen nutzen die Veranstaltungen, um gezielt ‘Pipelines’ zu neuen Geschäftspartnern aufzubauen. Der Beitrag liefert empirische Belege über die Struktur der Informationsflüsse und Interaktionsprozesse basierend auf Unternehmensbefragungen bei zwei internationalen Leitmessen in Frankfurt/Main.

Temporäre Cluster Internationale Messeveranstaltungen Global Buzz Pipelines Wissensgenerierung Face-to-Face-Kontakte

Bathelt H. y Schuldt N. Entre luminarias y trituradoras de carne: Ferias comerciales internacionales como agrupaciones temporales, Regional Studies. En este ensayo, defendemos que las ferias comerciales internacionales consideradas como agrupaciones temporales son acontecimientos importantes que respaldan los procesos económicos de aprendizaje interactivo y creación de conocimientos. En estos contextos, la proximidad geográfica y el contacto personal facilitan que los protagonistas de diferentes países puedan intercambiar información sobre mercados, productos e innovaciones. La variedad de las reuniones planificados o sin planificar y la rica ecología de los flujos de información y las diferentes formas de interacción crean una ‘agitación global’. Las empresas utilizan tales eventos para establecer conscientemente ‘rutas’ con nuevos socios comerciales en todo el mundo. En este artículo damos pruebas empíricas de dos ferias representativas celebradas en Fráncfort/Main, Alemania, para respaldar estas argumentaciones.

Agrupaciones temporales Ferias comerciales internacionales Agitación global Formación de rutas Creación del conocimiento Contacto personal

Keywords:

• Temporary clusters
• International trade fairs
• Global buzz
• Pipeline formation
• Knowledge creation
• Face-to-face contact

JEL classifications:

• D83
• L22
• M21
• O18

Acknowledgements

An earlier version of this paper was presented in 2005 at the annual meeting of the Association of American Geographers in Denver. The authors would particularly like to thank Bjørn Asheim, Sven Knippen, Deborah Leslie, Norma Rantisi, Clare Wiseman and Peter Wood, as well two reviewers and the editors of Regional Studies, for helpful comments and advice. These comments have helped shape the arguments presented in this paper. Parts of this research were funded through the Dr. Wolff Foundation (Marburg).

Notes

1. The intention is not to introduce a slippery concept when using the term ‘temporary clusters’. Real transactions are not characteristic of these events and this term is referred to strictly because the structure of information and knowledge flows during international trade fairs and other temporary, periodic events of the social economy (e.g. Norcliffe and Rendace, 2003) resembles those flows characteristic for permanent clusters (Maskell et al., 2004).

2. Of course, this does not imply that information flows and knowledge dissemination are arbitrary in character. They are, of course, like any sort of social interaction structured and differentiated according to social and cognitive affinities (Giuliani and Bell, 2005) and pre-existing relations. At the same time, these information flows are highly fluid, spontaneous and unpredictable, and are shaped by unplanned encounters and observations.

3. Of course, trade fairs do not just benefit cluster firms. They are equally or even more important to those firms that are not part of a cluster and which lack the constant day-to-day information flows that can be so beneficial in this context. For these firms, the communication and interaction processes analyzed below also apply. They might be the single most important contact to their global business community and have a tremendous impact on decisions regarding the production programme and innovation process.

4. In 2003, Frankfurt/Main hosted 24 international trade fairs, among those the World Forum of the Process Industry (ACHEMA), International Motor Show for Passenger Cars (IAA) and the Frankfurt Book Fair. A total of 40 295 exhibitors presented their products at these fairs and more than 2.4 million visitors came to examine and evaluate these exhibits (Messe Frankfurt GmbH, 2003; Ausstellungs- und Messe-Ausschuss der Deutschen Wirtschaft, 2004).

5. The latter group of exhibitors was not included in this study because it was not intended to analyze the effects of low cost competition. During the trade fair, some interesting observations were made, however, regarding the action of these firms and the way that others responded to this. Cases were even witnessed where Chinese firms had to abandon their exhibits owing to accusations regarding plagiarism and the illegal imitation of innovations. Further, it was apparent that numerous people, often of Asian origin, systematically took photographs of creative, trendy and innovative products, although this was strictly forbidden. Other firms were quite upset about this behaviour and, as several interviewees emphasized, avoided direct contact with their Asian counterparts. Several firms pointed out that it was virtually impossible to stop people from taking photographs because there were simply too many who did this.

6. These were the products that were focussed on in the survey. L + B, however, also includes product groups in which technological aspects dominate, such as in the area of house and building automation.

7. Not all exhibitors interviewed, however, said that they would want to meet customers after trade fair hours. Some were glad to have some time off after a hard work day. Newcomers seemingly did not know enough about customers to recognize the potential for such meetings. The impression was that those who did not see much value in informal meetings with their customers did not realize this to be an opportunity to intensify existing contacts and develop stronger ties for joint future endeavours.

8. There seemed to be a tendency, particularly among leading firms, to question the importance of trade fairs as they had become very expensive. A manager at IFFA said that his firm would not miss much if they did not participate in the trade fair. They would be market leaders anyway. There is a danger, of course, that trade fairs could lose their importance if these firms decided not to show up.

9. Of course, firms have the option to remain anonymous when they approach their competitors' exhibits to ‘spy out’ additional information (Maskell et al., 2004). Although the business literature makes suggestions of how to deal with supposed colleagues from other firms who have not identified themselves as such (e.g. Clausen and Schreiber, 2000), it remains unclear to what extent such behaviour occurs and how important it is. While some firms said that this was common practice, others insisted that they would never conduct such business practices. Especially among well-established small and medium-sized firms, it seemed to be part of the code of conduct to treat competitors in a fair manner. Some interviewees mentioned that this had become much stronger over the past decade. Of course, the observations of people illegally taking photos of other exhibits are another matter.

10. Unlike the exhibitors at IFFA, who have more regular contact with competitors and their products during day-to-day operations, respondents at L + B mentioned that the trade fair would be the only opportunity for them to get an overview about their competition.

11. In contrast, other leading firms seemed to prefer introducing innovations during their own special events at some other time to receive full attention by the customers and relevant media.