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Local productive systems : a survey of the literature. This article presents an assessment of the literature on local productive systems (LPS), emphasising the origins and development of this concept This brief review of literature allows to stress the important contribution of Alfred Marshall's theoretical developments to the most recent works dealing with LPS (involving the analysis of inductrial districts in Italy, the clusters in developing countries, the adoption of innovations in rural areas, etc.). The notion of LPS allows, first, to understand the organisation of linkages among firms located in the same area, and second, to clarify the nature of externalities generated by their proximity. A LPS can be literally defined as a cluster characterised by the proximity of productive systems (industrial and service firms, research centres, interfaces, etc.) which are interrelated at different degrees. However, LPS is not a stable concept and is subject to many different interpretations, two of which are the focus of this article.
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