In this paper we investigate the nature and directions of inter-industry dynamic linkages across Italian manufacturing sectors. We perform a very disaggregated analysis in order to identify, for each 3-digit industry, which composition of industrial activity is more conducive to growth. We ¢nd that diversity matters for growth, but each industry needs its own diversity. We provide some evidence of clustering of industries based on dynamic externalities. We ¢nd that many spillovers occur within input-output relationships. They often originate in downstream sectors favouring the growth of upstream industries. Lastly, the importance of spillovers does not depend on the technological intensity of the industry.
Building on Istat [5], Brusco and Paba [4] developed a mathematical algorithm which tries to identify the number and the importance of Italian industrial districts. Unfortunately, this algorithm is too rigid and it rules out some important small-firm, specialized local industries. To solve this problem, we propose a Fuzzy System. We obtain two main results. (l) With the fuzzy approach, most of the industrial districts identified in the current literature are still included, but it is now possible to recover some important local production systems ruled out by the crisp approach.(2) The score obtained allows us to rank, sector by sector, all the industrial districts according to their quantitative importance and to their adherence to the characteristics emphasized in the literature, whereas the crisp approach says only yes or not.
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