Knowledge, Market Structure, and Economic Coordination: Dynamics of Industrial Districts
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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Volume (Year): 33 (2002)
Issue (Month): 3 ()
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