The evolutionary nature of the firm within industrial districts

Abstract

The Italian industrial district phenomenon has been widely analyzed and admired. It demonstrates that small firm collaboration is globally competitive. But the conditions for competitiveness changed in the 1980s. The question some authors posed was: can the districts survive? Using an evolutionary economic analysis, this article analyzes the challenges faced by the district paradigm of development, with special attention being paid to their capacities to improve efficiency and innovation. It concludes that strategic adaptation will be slow but that the flexibility inherent in the district model will sustain those firms that link to global networks.

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