Globalization and Institutional Change in Italian Industrial Districts

Abstract

In this chapter the authors investigate the adaptability of regional production systems—characterized by localized learning dynamics—to globalization processes. In applying an institutional perspective to the analysis of regional economic change in Italian industrial districts, the argument is developed that successful adaptation is most likely in situations of hybrid institutional adjustments, in which fundamental institutional change aimed at triggering new economic developments in certain industry segments is combined with institutional persistence in others in order to actively integrate long-established industries into the restructuring process. This is illustrated empirically by analyzing regional restructuring over the past 35 years in the Canavese district in Italy, a district traditionally dominated by the automotive–metallurgical industry around Fiat and the electronics–mechatronics industry around Olivetti.

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