Innovation in the Industrial Districts. A Critical Survey of Literature

The rich literature on industrial districts leaves little space to the theme of innovation. Italian industrial districts are mainly specialised in traditional industries and the firms which compose them are of small size and then less prepared to manage technological change. Nevertheless innovation could prove in coming years a more and more important challenge to sustain the competitiveness of local systems of small firms in a context of globalisation of markets and of rise of new competitors. The paper starts with a revision of the concept of industrial district, analysing the elements that in the definition can have effects on the innovative capacity of firms. The third paragraph departs from the argument of industrial districts, to explore the grounds on which the spatial variable can have effects on the innovative activity of firm, intended both as the creation of new processes and products, and as the behaviour in terms of adoption of innovations. Finally the fourth paragraph comes back to industrial districts, to explain why and how firms belonging to districts may have special features, if compared to small firms acting in other environments, as regards the creation and adoption of innovation. The last section contains an agenda for future empirical research based on the critical points emerging from theoretical literature.