Life Cycle vs. Multiple Path Dependency in Industrial Districts

The aim of this article is to shed light on the evolutionary process of industrial districts (IDs), evaluating the role of path dependence in their growth trajectories. We intend here to identify the districts' life cycles and the factors that influence the origin, development and maturity stages. Following an evolutionary economics approach, we investigated the path-dependence mechanism behind the evolution of IDs. By adopting a qualitative meta-study approach, the paper shows how different IDs have changed over time and how their growth pattern is partially determined by initial conditions and by heterogeneous capabilities cultivated by district firms. The analysis is applied to 12 case studies of Italian IDs developed in the literature, following the model of qualitative meta-analysis for theory building. The results provided add new insights to the present literature on evolutionary geography by indicating some key triggering factors. Our contribution shows that instead of a standardized life cycle, Italian IDs follow a multiple growth pattern in their development.

[1]  Meine Pieter van Dijk,et al.  Clusters Facing Competition: The Importance of External Linkages , 2005 .

[2]  Silvia Rita Sedita,et al.  INDUSTRIAL DISTRICTS EVOLUTIONARY TRAJECTORIES:LOCALIZED LEARNING, DIVERSITY AND EXTERNAL GROWTH , 2008 .

[3]  Fiorenza Belussi,et al.  The Technological Evolution of Industrial Districts , 2003 .

[4]  K. Arrow The Economic Implications of Learning by Doing , 1962 .

[5]  P. Sunley Marshallian Industrial Districts: The Case of the Lancashire Cotton Industry in the Inter-War Years , 1992 .

[6]  Roberta Rabellotti,et al.  Italian SMEs and industrial districts on the move: Where are they going? , 2007 .

[7]  Andrea Bonaccorsi,et al.  Industry Life Cycle and the Evolution of an Industry Network , 2000 .

[8]  A. Chandler,et al.  Regional Advantage: Culture and Competition in Silicon Valley and Route 128 , 1994 .

[9]  Peter Maskell,et al.  Towards a Knowledge‐based Theory of the Geographical Cluster , 2001 .

[10]  M. D. Guardo,et al.  Le prospettive di sviluppo di un aggregato territoriale high-tech: il caso di Catania , 2004 .

[11]  Fiorenza Belussi,et al.  Knowledge creation, learning and innovation in italian industrial districts , 2002 .

[12]  Maryann P. Feldman,et al.  Innovative clusters and the industry life cycle , 1995 .

[13]  A. Markusen Sticky Places in Slippery Space: A Typology of Industrial Districts* , 1996 .

[14]  Robert Hassink,et al.  The Strength of Weak Lock-Ins: The Renewal of the Westmünsterland Textile Industry , 2007 .

[15]  Gianni Lorenzoni,et al.  The firms that feed industrial districts: A return to the Italian source , 1999 .

[16]  Maryann Feldman,et al.  THE LOCATIONAL DYNAMICS OF THE US BIOTECH INDUSTRY: KNOWLEDGE EXTERNALITIES AND THE ANCHOR HYPOTHESIS , 2003 .

[17]  Dong-Ho Shin,et al.  The restructuring of old industrial areas in Europe and Asia , 2005 .

[18]  Jinn-yuh Hsu THE EVOLVING INSTITUTIONAL EMBEDDEDNESS OF A LATE-INDUSTRIAL DISTRICT IN TAIWAN , 2004 .

[19]  KA Thleen,et al.  Building Theories from Case Study , 2007 .

[20]  G. Gereffi,et al.  The governance of global value chains , 2005 .

[21]  Mark S. Granovetter Economic Action and Social Structure: The Problem of Embeddedness , 1985, American Journal of Sociology.

[22]  Andrea Morrison,et al.  Gatekeepers of Knowledge within Industrial Districts: Who They Are, How They Interact , 2008 .

[23]  Volker Mahnke,et al.  Global Strategy and the Acquisition of Local Knowledge How MNCs Enter Regional Knowledge Clusters , 2002 .

[24]  Robert Hassink,et al.  How to unlock regional economies from path dependency? From learning region to learning cluster , 2005 .

[25]  A. Strauss,et al.  The discovery of grounded theory: strategies for qualitative research aldine de gruyter , 1968 .

[26]  S. Iammarino,et al.  MNCs, Technological Innovation and Regional Systems in the EU: Some Evidence in the Italian Case , 1998 .

[27]  F. Belussi,et al.  The Symbiotic Division of Labour between Heterogeneous Districts in the Dutch and Italian Horticultural Industry , 2008 .

[28]  D. North Institutions, Institutional Change and Economic Performance: Economic performance , 1990 .

[29]  Bj⊘rn Asheim,et al.  Explaining Spatial Patterns of Innovation: Analytical and Synthetic Modes of Knowledge Creation in the Medicon Valley Life-Science Cluster , 2008 .

[30]  Transforming Industrial Districts: Large Firms and Small Business Networks in the Italian Eyewear Industry , 2003 .

[31]  H. Thomas,et al.  Competitive Groups as Cognitive Communities: The Case of Scottish Knitwear Manufacturers Revisited , 1989 .

[32]  R. Martin,et al.  Path dependence and regional economic evolution , 2006 .

[33]  Steven Klepper,et al.  Heritage and Agglomeration: The Akron Tyre Cluster Revisited , 2009 .

[34]  H. Schmitz,et al.  How does insertion in global value chains affect upgrading in industrial clusters? , 2002 .

[35]  M. Hannan,et al.  The Population Ecology of Organizations , 1977, American Journal of Sociology.

[36]  Boyan Jovanovic,et al.  The Life Cycle of a Competitive Industry , 1993, Journal of Political Economy.

[37]  Fiorenza Belussi,et al.  Path-dependency vs. industrial dynamics: an analysis of two heterogeneous districts , 1999 .

[38]  Raghu Garud,et al.  Path Creation as a Process of Mindful Deviation , 2013 .

[39]  N. Thrift,et al.  Neo‐Marshallian Nodes in Global Networks* , 1992 .

[40]  Fiorenza Belussi The evolution of a western consolidated industrial district through the mechanism of knowledge creation, ICT adoption, and the tapping into the international commercial nets: the case of Montebelluna sportwear district , 2005 .

[41]  Guido Nassimbeni,et al.  Local manufacturing systems and global economy: are they compatible?: The case of the Italian eyewear district , 2003 .

[42]  Eric von Hippel,et al.  The Journal of Product Innovation Management 18 (2001) 247–257 PERSPECTIVE: User toolkits for innovation , 2022 .

[43]  L. Pilotti,et al.  Learning at the boundaries for industrial districts between exploitation of local resources and the exploration of global knowledge flows , 2006 .

[44]  R. Pouder,et al.  Hot Spots and Blind Spots: Geographical Clusters of Firms and Innovation , 1996 .

[45]  J. Enns,et al.  What competition? , 2002, Trends in Cognitive Sciences.

[46]  Michaela Trippl,et al.  Like Phoenix from the Ashes? The Renewal of Clusters in Old Industrial Areas , 2004 .

[47]  Fiorenza Belussi,et al.  Evolution and relocation in fashion-led Italian districts: evidence from two case-studies , 2006 .

[48]  S. Klepper Industry Life Cycles , 1997 .

[49]  Peter Maskell,et al.  Localized Learning and Industrial Competitiveness , 1995 .

[50]  Giorgio Gottardi,et al.  Evolutionary patterns of local industrial systems : towards a cognitive approach to the industrial district , 2000 .

[51]  E. Schamp Decline of the District, Renewal of Firms: An Evolutionary Approach to Footwear Production in the Pirmasens Area, Germany , 2005 .

[52]  K. Eisenhardt Building theories from case study research , 1989, STUDI ORGANIZZATIVI.

[53]  P. David Why are institutions the ‘carriers of history’?: Path dependence and the evolution of conventions, organizations and institutions , 1994 .

[54]  P. Krugman Geography and Trade , 1992 .

[55]  Jim Bell,et al.  'Born-again global' firms: An extension to the 'born global' phenomenon , 2001 .

[56]  Ha Henny Romijn,et al.  What drives innovativeness in industrial clusters? Transcending the debate , 2005 .

[57]  Anne L. J. Ter Wal,et al.  Knowledge Networks and Innovative Performance in an Industrial District: The Case of a Footwear District in the South of Italy , 2007 .

[58]  W. Orlikowski,et al.  Windows of Opportunity: Temporal Patterns of Technological Adaptation in Organizations , 2011 .

[59]  Bj⊘rn Asheim,et al.  Nodes, networks and proximities: on the knowledge dynamics of the Medicon Valley biotech cluster , 2004 .

[60]  Lucio Biggiero,et al.  Identity and Identification in Industrial Districts , 2012 .

[61]  Alexander Gerybadze,et al.  Globalization of R&D: recent changes in the management of innovation in transnational corporations , 1999 .

[62]  R. Boschma,et al.  Evolutionary economics and industry location , 2003 .

[63]  Henry Chesbrough,et al.  Open Innovation: The New Imperative for Creating and Profiting from Technology , 2003 .

[64]  Lucio Biggiero,et al.  The Biomedical Valley: structural, relational and cognitive aspects , 2003 .

[65]  A. Sammarra Lo sviluppo dei distretti industriali. Percorsi evolutivi fra globalizzazione e localizzazione , 2003 .

[66]  Paul A. David,et al.  The Evolutionary Foundations of Economics: Path dependence in economic processes: implications for policy analysis in dynamical system contexts , 2005 .

[67]  Björn Asheim,et al.  Industrial districts as ‘learning regions’. A condition for prosperity? , 1996 .

[68]  Paolo Guerrieri,et al.  The Global Challenge to Industrial Districts: Small and Medium Sized Enterprises in Italy and Taiwan , 2001 .

[69]  AnnaLee Saxenian,et al.  Silicon Valley's New Immigrant Entrepreneurs , 1999 .

[70]  Roberto Grandinetti,et al.  Evolutionary patterns of Italian industrial districts , 1999 .

[71]  Brian J. Loasby Market institutions and economic evolution , 2000 .

[72]  A. Scott Geography and economy , 2006 .

[73]  Maryann P. Feldman,et al.  The Locational Dynamics of the U.S. Biotech Industry: Knowledge Externalities and the Anchor Hypothesis , 2005 .

[74]  R. Cafferata,et al.  The Role of Information in the Internationalisation of SMEs: A Typological Approach , 1995 .

[75]  S. Durmusoglu Open Innovation: The New Imperative for Creating and Profiting from Technology , 2004 .

[76]  W. Brian Arthur,et al.  Path-dependent processes and the emergence of macro-structure , 1987 .

[77]  Fiorenza Belussi,et al.  Industrial Districts, Relocation, and the Governance of the Global Value chain , 2005 .

[78]  Fiorenza Belussi,et al.  The generation of contextual knowledge through communication processes. The case of the packaging machinery industry in the Bologna district , 2003 .

[79]  Giacomo Becattini From the industrial district to the districtualisation of production activity: some considerations , 2003 .

[80]  H. Schmitz,et al.  Principles for promoting clusters & networks of SMEs , 1999 .

[81]  W. Powell,et al.  Interorganizational Collaboration and the Locus of Innovation: Networks of Learning in Biotechnology. , 1996 .

[82]  T. Bunnell,et al.  ‘Spatializing’ knowledge communities: towards a conceptualization of transnational innovation networks , 2003 .