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Knowledge, Market Structure, and Economic Coordination: Dynamics of Industrial Districts

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  • Ron A. Boschma

Abstract

The industrial rise of the Third Italy has been characterized by the growth of dynamic networks of flexible small and medium-sized enterprises (SMEs) that are spatially concentrated in specialized industrial districts. This network type of coordination has been associated with horizontal, trust-based relations rather than vertical relations of power and dependency between local organizations. This would lower transaction costs (essential for local systems with an extreme division of labor), facilitate the transmission and exchange of (tacit) knowledge (and thus, learning and innovation), encourage cooperation mechanisms (such as the establishment of research centers), and stimulate political-institutional performance (e.g. through regulation of potential social conflicts). Copyright 2002 Gatton College of Business and Economics, University of Kentucky.

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Bibliographic Info

Article provided by Gatton College of Business and Economics, University of Kentucky in its journal Growth and Change.

Volume (Year): 33 (2002)
Issue (Month): 3 ()
Pages: 291-311

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Handle: RePEc:bla:growch:v:33:y:2002:i:3:p:291-311

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Cited by:
  1. Jose-Luis Hervas-Oliver, 2011. "Social Networks across Spatial Agglomerations: the Paradox of High-Tech Clusters. A Critical Revision of Clusters," ERSA conference papers ersa11p779, European Regional Science Association.
  2. Kroll, Henning, 2009. "Spillovers and proximity in perspective: a network approach to improving the operationalisation of proximity," Working Papers "Firms and Region" R2/2009, Fraunhofer Institute for Systems and Innovation Research (ISI).
  3. Davide Antonioli & Simone Borghesi & Massimiliano Mazzanti, 2014. "Are Regional Systems Greening the Economy? the Role of Environmental Innovations and Agglomeration Forces," Working Papers 2014.42, Fondazione Eni Enrico Mattei.
  4. Ron A. Boschma & Anne L.W. ter Wal, 2006. "Knowledge networks and innovative performance in an industrial district. The case of a footwear district in the South of Italy," Papers in Evolutionary Economic Geography (PEEG) 0601, Utrecht University, Section of Economic Geography, revised Jan 2006.
  5. Friso de Vor & Henri L.F. de Groot, 2008. "Agglomeration Externalities and Localized Employment Growth," Tinbergen Institute Discussion Papers 08-033/3, Tinbergen Institute.
  6. Nooteboom, B., 2005. "Innovation, Learning and Cluster Dynamics," Discussion Paper 2005-44, Tilburg University, Center for Economic Research.
  7. Kerstin Press, 2006. "Divide to conquer? The Silicon Valley - Boston 128 case revisited," Papers in Evolutionary Economic Geography (PEEG) 0610, Utrecht University, Section of Economic Geography, revised Dec 2006.
  8. Giulio Cainelli & Massimiliano Mazzanti & Alessio D'Amato, 2013. "Adoption of Waste-Reducing Technology in Manufacturing: Regional Factors and Policy Issues," Working Papers 2013162, University of Ferrara, Department of Economics.
  9. Roberto Antonietti & Giulio Cainelli, 2011. "The role of spatial agglomeration in a structural model of innovation, productivity and export: a firm-level analysis," The Annals of Regional Science, Springer, vol. 46(3), pages 577-600, June.
  10. Giulio Cainelli & Sandro Montresor & Giuseppe Vittucci Marzetti, 2010. "Production and financial linkages in inter-firm networks: structural variety, risk-sharing and resilience," Openloc Working Papers 1018, Public policies and local development.
  11. Giulio Cainelli & Donato Iacobucci & Enrica Morganti, 2004. "Spatial agglomeration and business groups: new evidence from Italian industrial districts," ERSA conference papers ersa04p402, European Regional Science Association.
  12. Friso de Vor & Henri L.F. de Groot, 2008. "Agglomeration Externalities and Localized Employment Growth," Tinbergen Institute Discussion Papers 08-033/3, Tinbergen Institute.

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