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Upgrading Trentino’s industrial base: A relatedness-based roadmap

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  • OECD

Abstract

Diversifying the industrial base of the Autonomous Province of Trento (Trentino, Italy) is an important policy priority for strengthening productivity growth, given the region’s comparatively smaller manufacturing and knowledge-intensive service sectors relative to peer regions. Drawing on sector-level employment data for 107 Italian regions and 611 local labour market systems, this paper maps the relatedness between economic activities in Italy to identify Trentino’s existing clusters of strength and realistic pathways for industrial upgrading. The analysis underscores that diversification opportunities are shaped by capabilities embedded in current specialisation patterns, reflecting the path-dependent nature of industrial development. The paper proposes a tailored industrial strategy that matches sector-specific interventions to local conditions: supporting competitiveness in established clusters, scaling up related emerging industries and fostering experimental diversification into strategic fields.

Suggested Citation

  • Oecd, 2026. "Upgrading Trentino’s industrial base: A relatedness-based roadmap," OECD Local Economic and Employment Development (LEED) Papers 2026/09, OECD Publishing.
    • Handle: RePEc:oec:cfeaaa:2026/09-en
    DOI: 10.1787/e2b8ddce-en
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    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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