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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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  • Ron A. Boschma, 2002. "Knowledge, Market Structure, and Economic Coordination: Dynamics of Industrial Districts," Growth and Change, Wiley Blackwell, vol. 33(3), pages 291-311.
  • Handle: RePEc:bla:growch:v:33:y:2002:i:3:p:291-311
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    Citations

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    Cited by:

    1. Lorenzo Ciapetti, 2011. "Technological Change, Knowledge Integration and Adaptive Processes: The Mechatronic Evolution of the Reggio Emilia District," Chapters,in: Knowledge Transfer and Technology Diffusion, chapter 5 Edward Elgar Publishing.
    2. Philip Cooke, 2010. "Jacobian Cluster Emergence: Wider Insights from ‘Green Innovation’ Convergence on a Schumpeterian ‘Failure’," Chapters,in: Emerging Clusters, chapter 2 Edward Elgar Publishing.
    3. Pier Luigi Sacco & Guido Ferilli & Giorgio Tavano Blessi & Massimiliano Nuccio, 2013. "Culture as an Engine of Local Development Processes: System-Wide Cultural Districts I: Theory," Growth and Change, Wiley Blackwell, vol. 44(4), pages 555-570, December.
    4. 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.
    5. Michel Barabel & Isabelle Huault & Olivier Meier, 2007. "Changing Nature and Sustainability of the Industrial District Model: The Case of Technic Valley in France," Growth and Change, Wiley Blackwell, vol. 38(4), pages 595-620.
    6. Juan Eduardo Chica & Carlos Marmolejo, 2016. "Knowledge economy and metropolitan growth: Barcelona and Helsinki metropolitan areas as case studies," International Journal of Knowledge-Based Development, Inderscience Enterprises Ltd, vol. 7(1), pages 22-42.
    7. Ron Boschma & Anne L. J. ter Wal, 2007. "Knowledge Networks and Innovative Performance in an Industrial District: The Case of a Footwear District in the South of Italy," Industry and Innovation, Taylor & Francis Journals, vol. 14(2), pages 177-199.
    8. Giulio Cainelli & Donato Iacobucci & Enrica Morganti, 2006. "Spatial agglomeration and business groups: New evidence from Italian industrial districts," Regional Studies, Taylor & Francis Journals, vol. 40(5), pages 507-518.
    9. 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).
    10. Cainelli, Giulio & D’Amato, Alessio & Mazzanti, Massimiliano, 2015. "Adoption of waste-reducing technology in manufacturing: Regional factors and policy issues," Resource and Energy Economics, Elsevier, vol. 39(C), pages 53-67.
    11. Giulio Cainelli & Sandro Montresor & Giuseppe Vittucci Marzetti, 2012. "Production and financial linkages in inter-firm networks: structural variety, risk-sharing and resilience," Journal of Evolutionary Economics, Springer, vol. 22(4), pages 711-734, September.
    12. 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.
    13. Gloria Parra-Requena & Francesc Xavier Molina-Morales & Pedro Manuel García-Villaverde, 2010. "The Mediating Effect of Cognitive Social Capital on Knowledge Acquisition in Clustered Firms," Growth and Change, Wiley Blackwell, vol. 41(1), pages 59-84.
    14. Frank A.G. den Butter & Jelle Joustra, 2014. "The Industrial Organisation of the Dance Industry in the Netherlands: a Transaction Cost Perspective on Hybrid Forms of Organisation," Tinbergen Institute Discussion Papers 14-095/VI, Tinbergen Institute.
    15. Guido Fioretti, 2014. "Trajectories in geographical space out of communication in acquaintance space: An agent-based model of a textile industrial district," Papers in Regional Science, Wiley Blackwell, vol. 93, pages 179-201, November.
    16. Giulio Cainelli, 2008. "Spatial Agglomeration, Technological Innovations, and Firm Productivity: Evidence from Italian Industrial Districts," Growth and Change, Wiley Blackwell, vol. 39(3), pages 414-435.
    17. 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;Western Regional Science Association, vol. 46(3), pages 577-600, June.
    18. Kerstin Press, 2006. "Divide to conquer? The Silicon Valley - Boston 128 case revisited," Papers in Evolutionary Economic Geography (PEEG) 0610, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2006.
    19. Jiang Wei & Minfei Zhou & Mark Greeven & Hongyan Qu, 2016. "Economic governance, dual networks and innovative learning in five Chinese industrial clusters," Asia Pacific Journal of Management, Springer, vol. 33(4), pages 1037-1074, December.
    20. Friso de Vor & Henri L.F. de Groot, 2008. "Agglomeration Externalities and Localized Employment Growth," Tinbergen Institute Discussion Papers 08-033/3, Tinbergen Institute.
    21. Anne Margarian, 2013. "A Constructive Critique of the Endogenous Development Approach in the European Support of Rural Areas," Growth and Change, Wiley Blackwell, vol. 44(1), pages 1-29, March.

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