The industrial district of Lecco: innovation and transformation processes

Abstract

An analysis of the industrial district of Lecco shows the great vitality of the production organization model based on an articulated and interdependent system of small firms. The system of mechanical firms of Lecco, during the 1980s, showed important elements of transformation and a great capability for innovation, with the introduction of both new products and new productive processes. To this has been added a growing autonomy of the small firms on the market. This is reflected in increasing exports, a growing number of customers, the diminishing importance of price competition, and the ability to enter new markets (both geographic and, above all, oriented towards satisfying different needs). Innovation and transformation represents, then, the main characteristics of a system of small firms. The small mechanical firms of Lecco have proved to be more efficient compared to medium-sized firms in the same sector. They show higher rates of production growth, employment growth and, above all, higher profitability rates compared to larger firms.

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