Density Dependent Dynamics in the Arezzo jewellery district (1947–2001): Focus on foundings

Abstract

With this paper, the purpose is to test new theoretical and empirical tools to explain the deep changes that Italian industrial districts are experiencing. This issue is addressed by means of the evolutionist-multidisciplinary approach, and a mixture of qualitative and quantitative methodologies. Reliance is on the theoretical background of organizational ecology, and particularly on the theories of density-dependence. The focus of study is therefore: (a) the internal structure of district organization-forms and (b) their evolution, which means moving from a structural to a process-dynamic perspective. Drawing upon the seminal work of Hannan, Freeman and Carroll, their insights into the traditional conceptualization of Marshallian industrial districts as defined by Becattini are investigated. The paper analyses the evolution of the Arezzo jewellery industrial district according to the HEDRON methodology over the period 1947–2001 and investigates the firms' vital processes at a community level by grouping organizational populations into three multi-populations (complete-cycle, subcontractor, and trade and instrumental goods). The data used to reconstruct life histories was collected from the Firms Directory (Registro ditte) of the Arezzo Chamber of Commerce: in total, more than 34,000 records were considered, including 3610 foundings and 1618 failures.

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