From local networks of SMEs to virtual districts?

Abstract

Industrial districts as local networks of small and medium enterprises (SMEs) rooted their competitiveness in a mix of economic relationships and social ties. Recently, network technologies have promised gains of efficiency through a reduction in transaction costs and showed new commercial opportunities for small firms. Despite the morphological similarities between industrial districts and network technologies, a longitudinal analysis of ICT diffusion within Italian districts shows that the foreseen convergence between the district economic model and new technologies should not be taken for granted. The observed specific evolutionary paths concerning technology innovation in local systems also opens-up issues of economic policy.

Collective efficiency, policy inducement and social embeddedness: Drivers for the development of industrial districts

“…This is why producers are very sensitive to the flow of 'information' and 'innovations' that helps them upgrade their production. In this cluster and in this sector, innovation refers to the incremental adoption of leading technology adapted to furniture production (for an analysis of innovation trends within the furniture industry see Lorenzen 1998a, 12-16;Chiarvesio, Di Maria, and Micelli 2004 more specifically on ICT systems), like the adaptation of automated techniques (for example, Computer-Aided-Design [CAD] and Computerised-Numerical-Control [CNC]), the use of new materials (such as new types of leather, new types of laminated boards), and the implementation of new marketing practices (for example, sales via the Internet). As an explanation for the focus on these incremental innovations, Lorenzen offers the following: continuous revisions of product designs and features, albeit modest in scale, may ensure competitiveness of furniture firms participating in specialised subcontracting arrangements.…”

Entrepreneurship policy and targets: the case of a low absorptive capacity region

“…Measures of this type entail a double component: (i) they constitute an instrument for fostering interaction among the actors and components of a territory; (ii) they are used to promote integration in wider networks, both on a functional and regional level. This last aspect is particularly important in the case of smaller business projects, in which the absence of certain competences can imply a barrier to accessing such networks (Chiarvesio et al 2004).…”

Dynamics of Industrial Districts and Business Groups: The Case of the Marche Region

“…This approach led to a process of supply chain qualification, even at the local level, with positive (or negative, in case of exclusion) impacts on district suppliers (Corò & Grandinetti, 1999). Leading firms also operated internationally through a growing demand for services not available at the local level, such as marketing, design and technological innovation (Chiarvesio et al, 2004). Those activities had often not received attention from district firms.…”