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The paper explores the structural changes, in response to internationalization, in an important traditional activity (food chain, meat processing) in a typical ‘district area’. In the paper, attention is focused on the ‘Institutional structure of production’ (Coase, R. 1992 Coase, R. 1992. The institutional structure of production. American Economic Review, 82(4): 713–719. [Web of Science ®] , [Google Scholar]) and the cluster is considered as a whole, as a complex economic player, capable of generating coherent action, regulated by institutional mechanisms, and founded on a set of ‘public assets’ which make up its ‘social capital’. The paper is based on many empirical studies and surveys aimed at exploring the structure of SMEs and the role of the local institutions: the changes observed over time and in response to internationalization underline the reinforcement of the activity's cluster configuration. These features emphasize the existence of a specific unit of analysis, indivisible from the individuals which constitute it. The discussion touches on the classical themes of the efficiency of the net-economy based on SMEs, and their prospects in a context of growing globalization. The paper does not aim to enter into the debate on the origins and mechanism of innovation. However, the case study does illustrate the strength of the hypothesis of a unit of analysis different from the firm for discussion of a number of topics: some empirical examples of innovation, of significance for the economic consolidation of the ID, highlight the importance of district relationships in the production and spread of innovation.
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