Spatial agglomeration and business groups: new evidence from Italian industrial districts



A few recent papers have tried to systematically analyse the relationship between
industrial districts and business groups, also taking into account the characteristics of the
latter. BALLONI and IACOBUCCI (1997) analyse the characteristics of the main groups
in the industrial districts of the Marche region. BRIOSCHI et al. (2002) analyse the
presence and characteristics of business groups in the main districts of Emilia Romagna. As
in the abovementioned studies the latter also refer to specific areas, although they show an
explicit interest in analysing the characteristics of business groups, their role within the
district and their evolution over time. Specifically BRIOSCHI et al. (2002) hypothesize that
the presence and characteristics of business groups is influenced by their belonging to an
industrial district. For example, the acquisition of other firms within the district should be
facilitated by the familiarity of firms within the same district.

Although the latter contributions directly address the relationship between the presence
of business groups and the characteristics and evolution of industrial districts, they fail to
identify a general framework for the possible relationship between firms’ organization and
their belonging to a business cluster. Of course, the causal relationships can work in both
directions. On the one hand, the characteristics of the cluster and its internal structure can
have an impact on the presence and evolution of firms’ organization; on the other hand,
the evolution of firms’ organizational structures can modify the configuration of local
systems. Most studies on the evolution of Italian industrial districts have focused their
attention on the latter relationship, while little empirical and theoretical work has been
done on the former3.

The analysis of the relationships between firms’ organizational forms and business
clustering is closely associated with the identification of evolutionary patterns of business
clusters4. On this issue one can imagine the following scenario. In the initial phases the
systemic dimension is dominant and the firms in the system can be considered as
homogeneous units, none of which is able to influence the dynamics of the system as a
whole. In later phases the advantages of spatial agglomeration allow some of the firms to
develop and grow; eventually these firms become predominant and are able to influence
the evolution of the system.

With specific reference to industrial districts, we can imagine the following evolutionary
path. At the beginning agglomeration economies are mainly propelled by sharing and
matching mechanisms that allow firms to reduce production costs (DURANTON and
PUGA, 2003). The competitive advantage of firms belonging to the district favours their
rate of growth compared with firms outside the district. At later stages the learning



More intriguing information

1. Visual Perception of Humanoid Movement
2. THE WELFARE EFFECTS OF CONSUMING A CANCER PREVENTION DIET
3. Gender and aquaculture: sharing the benefits equitably
4. The name is absent
5. Sustainability of economic development and governance patterns in water management - an overview on the reorganisation of public utilities in Campania, Italy, under EU Framework Directive in the field of water policy (2000/60/CE)
6. Sectoral specialisation in the EU a macroeconomic perspective
7. The name is absent
8. Personal Experience: A Most Vicious and Limited Circle!? On the Role of Entrepreneurial Experience for Firm Survival
9. The mental map of Dutch entrepreneurs. Changes in the subjective rating of locations in the Netherlands, 1983-1993-2003
10. The storage and use of newborn babies’ blood spot cards: a public consultation
11. The name is absent
12. The name is absent
13. Examining the Regional Aspect of Foreign Direct Investment to Developing Countries
14. Neighborhood Effects, Public Housing and Unemployment in France
15. The name is absent
16. Structural Breakpoints in Volatility in International Markets
17. NATURAL RESOURCE SUPPLY CONSTRAINTS AND REGIONAL ECONOMIC ANALYSIS: A COMPUTABLE GENERAL EQUILIBRIUM APPROACH
18. NVESTIGATING LEXICAL ACQUISITION PATTERNS: CONTEXT AND COGNITION
19. Workforce or Workfare?
20. The name is absent