1. Davit Darsavelidze
Phd Student, Erasmus Mundus beneficiary
ATEI of Thessaloniki,
Greece
Iv. Javakhishvili Tbilisi State University,
Georgia
Supervisor:
Prof. Dr. Nicos Komninos
URENIO
16 DECEMBER, 2009
Progress Research for PhD Degree in Economics
INNOVATION & CLUSTERS
AS DRIVERS OF LOCALIZATION VS. GLOBALIZATION
Hellenic Republic
Localizationvs.Globalization
Innovation

2. PRESENTATION HIGHLIGHTSPRESENTATION HIGHLIGHTS
1. INNOVATION - drive of development (Literature review)
• Term of Innovation
• Triple Helix model of innovation
• Cluster and the diamond model of competition
• Innovation environment
1. TOURISM CLUSTER of Thessaloniki
• Short review of History & Cultural heritage
• Stakeholders – Presence, Attitudes & Networking
• Triple helix and Diamond model
• Intelligence - Tool to develop networking
3. Conclusions and recommendations

3. INNOVATION - DEFINITIONINNOVATION - DEFINITION
“The commercially successful exploitation of new technologies,
ideas or methods through the introduction of new products and
processes, or through the improvement of existing ones.
Innovation is a result of interacting learning process that involves
often several actors from inside and outside the companies”
(EC DG XIII, 1996)
Innovation is new use of combination of different existing &/or new
knowledge to create or improve
(1)product, (2)production process or (2)organization
1. INNOVATION - drive of development (Literature review)1. INNOVATION - drive of development (Literature review)

4. TRIPLE HELIX MODEL of InnovationTRIPLE HELIX MODEL of Innovation
1. INNOVATION - drive of development (Literature review)1. INNOVATION - drive of development (Literature review)
Government - Industry - Academia
(Etzkowitz 2000)
Growth of Community Involvement
 To sustain development
 To rise input of all stakeholders
 To share responsibility for outcome
 To develop strong social capital
+ Community
Triple Helix model

5. CLUSTERS THEORY & DIAMOND MODEL OF COMPETITIONCLUSTERS THEORY & DIAMOND MODEL OF COMPETITION
1. INNOVATION - drive of development (Literature review)1. INNOVATION - drive of development (Literature review)
Cluster “Geographic concentration of interconnected companies
and institutions in particular field” brings competitive advantages
laid more in local Relations, Knowledge and Motivation hardly
matched by distant rivals.
(Porter 1998)

6. INTELLIGENT ENVIRONMENT IN URBAN TERRITORIESINTELLIGENT ENVIRONMENT IN URBAN TERRITORIES
1. INNOVATION - drive of development (Literature review)1. INNOVATION - drive of development (Literature review)
World Wide Web
& Other Net Based
Networking Means Communication
Technologies
Community Intelligence
Intelligent
Environment
Information
Management Tools
Institutional Intelligence
RealVirtual
Real Innovation Environment
Environment to innovateEnvironment to innovate
at a high scale Withat a high scale With
advanced IT technologies and competenciesadvanced IT technologies and competencies
Developing virtual worldDeveloping virtual world
to link the gap between space and timeto link the gap between space and time

7. INTELLIGENT ENVIRONMENTINTELLIGENT ENVIRONMENT
1. INNOVATION - drive of development (Literature review)1. INNOVATION - drive of development (Literature review)
Intelligent Cities
Brings together
skills, institutions & virtual spaces of cooperation
sustaining
creation of new knowledge (researchresearch),
monitoring knowledge flows (intelligenceintelligence),
disseminating existing knowledge (technology transfer)technology transfer),
applying knowledge (innovationinnovation)
developing new activities based on knowledge (incubationincubation)
and managing knowledge remotely (e-governmente-government)
(Komninos 2002, 2008, 2009).

8. 2. TOURISM CLUSTER OF THESSALONIKI2. TOURISM CLUSTER OF THESSALONIKI
Highlights:
 Short Review of History &
Cultural Heritage
 Triple Helix & Stakeholders -
Presence, Attitudes & Networking
 Diamond Model of Competition
 Intelligence - Tool of Innovation &
Networking

9. SOURCE OF THE RESEARCH & SWOT OF ATTITUDESSOURCE OF THE RESEARCH & SWOT OF ATTITUDES
• Main sources of information:
– Field work - Interviews with
local tourism stakeholders
– Official statistics
– Promotional materials
– Scientific literature
• SWOT analysis of networking
on a Cartesian coordinate system
2. TOURISM CLUSTER of Thessaloniki2. TOURISM CLUSTER of Thessaloniki

10. Hellenic dominance Influence of Other Cultures
Alexander the great 336–323 BC
City foundation 315 BC
168 BC Romans power
Byzantine culture 379
1204 Latin Empire
Byzantine culture 1246
1423 Venetian Republic
1430 Ottoman Rule
Independence - Balkan Wars 1912
1941 Nazi Germany occupation
Hellenic republic 1944
SOME LANDMARKS OF THE HISTORY OF THESSALONIKISOME LANDMARKS OF THE HISTORY OF THESSALONIKI
2 (1). Short review of History & Cultural heritage2 (1). Short review of History & Cultural heritage

11. CULTURAL SITES OF THESSALONIKICULTURAL SITES OF THESSALONIKI
• Arch of Galerius - 298-299 AD
• Rotunda - 306 AD
• Roman Forum
• Church of St. Demetrius - 4th
Century
• Church of Agia Sophia - 8th
Century
• White Tower - 16th
century
• Number of archeological sites
2 (1). Short review of History & Cultural heritage2 (1). Short review of History & Cultural heritage

12. BEAUTY & SPIRITS NEIGHBORING THE CITYBEAUTY & SPIRITS NEIGHBORING THE CITY
•Pella -The residence of Alexander the great
•Naoussa - School of Aristotle
•Mount Olympus - Inspiration of Greek Mythology
•Mount Athos - "The Garden of the Virgin Mary“
•Meteora - monasteries built on the top of the cliffs
2 (1). Short review of History & Cultural heritage2 (1). Short review of History & Cultural heritage

13. CITY FESTIVALSCITY FESTIVALS
• Thessaloniki International Film Festival
– Film Festival
– Thessaloniki Documentary Festival
– Video Dance Festival
– Other national festivals
• The Dimitria festival, after city's patron - St. Demetrius
(music, theatrical performances, dances, exhibitions and other)
• International Festival of Photography
• Jazz Festival
• Cultural Capital of Europe, 1997
2 (1). Short review of History & Cultural heritage2 (1). Short review of History & Cultural heritage

14. 2 (2). Stakeholders – Presence, attitudes & Networking2 (2). Stakeholders – Presence, attitudes & Networking
STAKEHOLDERS & OTHER DOTS OF TOURISM CLUSTERSTAKEHOLDERS & OTHER DOTS OF TOURISM CLUSTER

15. ACADEMIAACADEMIA
Alexander Technological
Educational Institute
(ATEI) of Thessaloniki
The Organization of Tourism
Education and Training
- Second Tourism educator in
Central Macedonia
- Institute of vocational training
- Secondary and post secondary
education
- School for tour guides
- Carrier office
- Member of international
organizations
- Main tourism educator institute
in Central Macedonia
- Strongest tertiary education
institute in the region
- Undergraduate studies
/Bachelors, Masters degree/
- Host of international students
exchange programs
- Member of international
organizations
- Main academic researcher in the
field of tourism
Department of Tourism
Management
1983
1937
2 (2). Triple Helix – Presence, attitudes & Networking2 (2). Triple Helix – Presence, attitudes & Networking

16. 2 (2). Triple Helix – Presence, attitudes & Networking2 (2). Triple Helix – Presence, attitudes & Networking
INDUSTRY - PRIVATE SECTORINDUSTRY - PRIVATE SECTOR
-Mainly for summer season
-Cultural product is additional
-insufficient usage of local
international events
LOCAL TOURISTIC PRODUCT
Presence of all main stakeholder
Large number of SMEs
Easy to start / operate business
STRONG POINTS
Lack of leadership
Poor standards of services
Poor use of Information Technologies
Weak Networking
Need for Tourism information
Little market research
Shortage of resources
No Joint effort in productivity Growth
Low innovation capacity
Little need of outsourcing
WEAK POINTS
All essential Infrastructure in place

17. 2. TOURISM CLUSTER of Thessaloniki - SWOT of Attitudes2. TOURISM CLUSTER of Thessaloniki - SWOT of Attitudes
ATTITUDES – INTERNAL FACTORS OF DEVELOPMENTATTITUDES – INTERNAL FACTORS OF DEVELOPMENT

18. 2 (2). Triple helix– Presence, attitudes & Networking2 (2). Triple helix– Presence, attitudes & Networking
GOVERNMENTGOVERNMENT
Main focus - preservation of heritage & centralized promotion policy
• Weakness in
• Offer of local touristic product & services
• Support programs to develop regional culture-based product
• Leadership - little trust of local stakeholders
• Needs of improvement
• Quality of tourism promotion infrastructure
• Tourism Information centers
• Web space/ portal linking all available touristic resources
• Prints, publishing & etc.
• Standards and marks of excellence
• Tourism education
• Linkage of Industry and Academia to development policy

19. 2. TOURISM CLUSTER of Thessaloniki – SWOT of Attitudes2. TOURISM CLUSTER of Thessaloniki – SWOT of Attitudes
ATTITUDES – GOVERNMENT SERVICESATTITUDES – GOVERNMENT SERVICES

20. 2 (2). Triple helix – Presence, attitudes & Networking2 (2). Triple helix – Presence, attitudes & Networking
COMMUNITYCOMMUNITY
•Tourist friendly
− Supportive to tourists
− Good host
− Smile and foreign language
− Tourist itself /high local demand on touristic products/
• Tourist friendly Skills and knowledge
• Little participation in tourism development policy
• Need for Raising awareness of tourist needs

21. TOURISM CLUSTER IN THESSALONIKITOURISM CLUSTER IN THESSALONIKI
2(3). Diamond Model of Competition2(3). Diamond Model of Competition
Firm Strategy Structure & Rivalry
• Big number of tourism SMEs
- Strong rivalry among them for local customers (strong
personal relations, Price reduction)
-Little innovation capacity and need to grow productivity
-Little resources and strength of competitiveness
• Law market trend watch and outsourcing capacity
•Few strong locally operating tourism companies
- Promoting locality as a destination, (partners abroad)
-Rivalry with strong tourism companies abroad
Relating & Supporting Industries
• Availability of all means of transportation
•High traffic and bad parking system
•Well developed food infrastructure
•Fairly developed shopping places
•International trade fair of Thessaloniki
•All necessary tourist friendly services in place
(communication, financial, medical, safety, etc.)
Demand conditions
• High demand of European countries
- Seaside resorts (Main fish)
- Cultural-based tourism (additional)
• Law demand on local international events
•High local demand - Greek style of life
•Central Macedonia – 2007
- 5th among Greek regions in hosting tourists
- 7, 15 million tourists served
- 60,423 bed-places in use and
Occupancy 52,6 %
Factor Condition
• Local resources
- Huge Historical & Cultural heritage
(Religion, Philosophy, Mythology)
-Fascinating environment
• Festivals and celebrations
•Tourist friendly population
•Fair condition of infrastructure for
hosting visitors
•Need for upgrade of education system
Government
• Focus on protection of national heritage
•Centralized policy of promotion localities
•Few support tools to grow productivity and
innovation
•Need of improvement of tourism info centers
•Necessity of active involvement of all
stakeholders in decision making process and
promotion of regional opportunities
Diamond
•Weak cooperation of similar businesses
•Weak cooperation among industry, academia
& government
•No merge of the companies
•High demand for promotion of the place &
its tourism products
•Lack of support tools for developing
networking and leadership
•Need for common strategy and continuity in
promotion
•Rise of awareness of local population
Chance
Crises of world economy – Time
-To develop networking
-To create common culture-based tourism
strategy
-To develop tourism product
-To prepare for common promotion campaign

22. 2(3). Diamond Model of Competition2(3). Diamond Model of Competition
SOME FIGURES ON DEMAND CONDITIONSOME FIGURES ON DEMAND CONDITION
Nights spent at hotels, similar establishments and camping
in Central Makedonia in 2007
Nights spent at hotels, similar establishments and camping
by Region in 2007 (mln.)
Foreigners first arriving in Central Macedonia Classified
by means of transport in 2007

23. 2. TOURISM CLUSTER of Thessaloniki – SWOT of Attitudes2. TOURISM CLUSTER of Thessaloniki – SWOT of Attitudes
ATTITUDES – NETWORKING - DIAMONDATTITUDES – NETWORKING - DIAMOND

24. 2(4). Intelligence – Tool of Innovation & Networking2(4). Intelligence – Tool of Innovation & Networking
WEB-INTELLIGENCE – NETWORKING OPPORTUNITIESWEB-INTELLIGENCE – NETWORKING OPPORTUNITIES
Academy
Government
Community
Industry
Offer -Tourist Product
services
Promotion Campaign
Cultural Heritage
Visitor/Company
Customer

25. WEB PORTAL - Business Assistance & benefitWEB PORTAL - Business Assistance & benefit
2(4). Intelligence – Tool of Innovation & Networking2(4). Intelligence – Tool of Innovation & Networking
Industry Academia
Technology watch
and R&D
Success stories
Networking
opportunities
Watch &
participation in a
strategic planning
Opportunities of
training/
consultancy
IMTs
CommunityGovernment
Access to spec.
tourism info.
Technology watch
and R&D
Watch &
participation in
strategic planning
Networking
opportunities
Offer of training/
consultancy
Career office
Opportunities
to support
tourism
development
Participation of
stakeholders in
strategic planning
Access to
stakeholders needs
Consultancy
Success stories
Transference
of Policy
Watch/
participation
Tourism skills
Networking
opportunities
Access to spec
tourism info &
stakeholders
Networking &
stakeholders
feedback on
strategic planning
IMTs development

26. STEPS TOWARDS NETWORKINGSTEPS TOWARDS NETWORKING•
Definingavailabletourismstakeholdersand
potentialleaderofnetworkingprocess
3. Recommendations & Conclusions3. Recommendations & Conclusions
•
Riseofawarenessofthestakeholdersto
networkandacceptanceoftheleader
•
Marketresearchdonebycommoneffort
•
Developmentofcity,regionaltourism
products
•
Preparationofcommontourismdevelopment
strategy
•
Jointpromotionofthetourismproductat
local&internationaltargetmarkets•
Servicedeliverywatchandfeedback
analyses
•
Updateofthestrategy,marketwatch,
supportofproductdevelopmentand
promotion
Round table,
a dialogue
Preparation of
common strategy
Implementation and update of Strategy

27. CONCLUSIONsCONCLUSIONs
 High Potential of Developing Strong Tourism Cluster
 Low Networking Capacity of Stakeholders
 Need for Leadership and Community Involvement
 Necessity of Preparation of Common Development Strategy
 Importance of use of IT Intelligence
3. Recommendations & Conclusions3. Recommendations & Conclusions

28. ACKNOWLEDGEMENTSACKNOWLEDGEMENTS
I’d like to thank:
• The Erasmus Mundus Program
• ATEI of Thessaloniki ; Iv. Javakhishvili Tbilisi State
University & Aristotle University of Thessaloniki
• Dr. Nicos Komninos, Dr. Ioannis Karamanidis, Dr. Fotis
Kilipiris, Dr. Simon Gelashvili, Dr. Spyros Avdimiotis.
• And all who assisted me during the research on this thesis

29. Thank you for your attentionThank you for your attention
THESSALONIKITHESSALONIKI
Davit Darsavelidze
Contact information:
E-mail: darsavelidze@gmail.com
TEL: +30 699 909 52 50 (Thessaloniki)
+995 99 43 88 97 (Tbilisi)