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This article deepens the theoretical understanding of learning processes in industrial districts (IDs) by analysing the emergent and deliberate structures that favour knowledge transfer at the local and distance level. An analytical framework illustrates district-learning dynamics through two mechanisms. The first is the exploitation of local knowledge structures. The second is the exploration of distant knowledge structures. We claim that a combination of the two mechanisms enhances the competitiveness of industrial districts in the global arena. We illustrate how these theoretical reflections find empirical evidence in the case of the Lake Naivasha cut-flower district in Kenya.

The aim of this paper is to contribute to the debate about how, in advanced countries, industrial districts specialised in traditional manufacturing industries evolve as a consequence of new challenges linked to the globalization process. Using a multiple case study design, the study examines the evolution of two fashion-led Italian districts: the Montebelluna sportswear system and the Vibrata-Tordino-Vomano clothing district. Our findings reveal that cluster firms' ability to shift from manufacturing to other activities providing higher returns along the global value chain is key to understanding the effect of globalization and relocation processes on the cluster's long-term competitiveness. As illustrated in this study, weak learning districts are the most threatened while innovative districts are able to enact a selective process of relocation, substituting outplaced activities with more valuable ones and attracting inward investments.