The Murano glass district: opportunities and trends

Abstract

Why did artistic glass production historically concentrate on the Murano Island? How did this island manage to become recognized around the world as the leader in artistic glass? Which are the reasons behind its competitive advantage? How did the Murano glass district cope with the threatening crises of the 21st century, namely the 2008 financial crisis and the 2020 COVID-19 pandemic? And, most importantly, which strategies can be followed by local producers to improve their performance and adapt their business model to the current and future economic trends, such as internationalization, digitalization and sustainability? These are some of the questions that we will try to answer in this thesis. Glassmaking in the island of Murano is recognized by the Italian law as one of the countless industrial districts that make up the country’s economic and productive system. Therefore, the first chapter serves as a theoretical introduction on industrial districts, starting from the earliest development of the theory by English economist Alfred Marshall, and including the successive contributions by other scholars, i.e., Giacomo Becattini and Michael E. Porter. We will then provide some information on Italian industrial districts, reporting data and describing classifications for both districts and companies operating within them. A more recent evolution of the concept of Marshallian district will also be considered, in light of the significant changes that happened to the current world economy. Starting from the second chapter our focus will shift specifically to the Murano district, recalling its historical development, from the oldest sign of the presence of glass producers in Venice in 982 A.D., through its peak in the Middle Ages, to the first challenges of the 17th and 18th centuries. Through data we will then describe how the district experienced the 2008 crisis, which worsened the difficult situation that it was already living internally starting from the beginning of the new century. We will also provide a brief description of the difficulties companies are facing today, as a consequence of the ongoing COVID-19 pandemic crisis. To conclude the chapter, we will identify some of the key factors that distinguish the competitive advantage of the district, i.e., the peculiar quality of the glass, the transmission of specific manufacturing skills and know-how from one generation to the next, the global appreciation of Made in Italy products and the influence of the Country-Of-Origin effect, and the recognition of the “Vetro Artistico Murano” trademark, established to guarantee the originality of the glass items. The third chapter will then explore three main current drivers of the industry and of the district, trends that local manufacturers should be aware of and should consider for the future development of the sector. Specifically, we will describe the three megatrends of the world economy, i.e., digitalization and Industry 4.0 innovations, internationalization and global trade, and environmental sustainability, as proposed by the United Nations, and draw parallels with Murano’s situation. In order to find empirical evidence on these three areas, the chapter concludes with the interview I conducted with Dr. Sergio Malara, the coordinator of Consorzio Promovetro, who reported interesting contributions on current or future projects the Murano district is undertaking, given the limited financial resources it receives from competent institutions. Finally, the fourth chapter concludes by analyzing four company case studies, collecting a diversified portfolio of experiences and strategic directions. The four examples will be VENINI, one of the most popular and successful Murano companies, Gambaro & Tagliapietra Murano Glass Studio, a smaller and more traditional reality, Wave Murano Glass Studio, one of the more recent startups in the island, and Andromeda Murano, another relevant company at the international level.