Districts producing on different segments of the market also differ as regards the
relationship between delocalisation strategies and export orientation. Strongly outward-
oriented districts tend to show a relatively low percentage of outsourced production, i.e.
they still produce with a high local content of input, as in the case of Fermano-
Maceratese and Brenta. On the other hand, relatively inward-oriented districts tend to
outsource a higher percentage of production abroad, i.e. to produce with a lower local
content of input, as in the case of Barletta.
3. Italian footwear districts in global value chains: the cases of Brenta and
Barletta.
In the previous section we argued that differences in delocalisation strategies by
Italian footwear districts are likely to be related to their market positions and the value
chains they belong to (high versus low quality). In this section we explore two selected
cases which make a strong case in favour of such an argument. These cases represent
two opposite models of production: a top brand districts such as Riviera del Brenta, and
a district producing low quality goods such as Barletta. The previous analysis on OPT
showed that these two districts has sofar followed opposite patterns of delocalisation:
Brenta relies relatively less on international delocalisation (it is still a net exporter of
intermediate items), whereas Barletta has gradually displaced intermediate processing
abroad and is progressively outsourcing also assembling operations (which suggests that
the overall production process is likely to be dismanted to be transferred completely to
low labour cost countries). In this section we suggest that these opposite models are
likely to affect opportunities for industrial upgrading of different footwear clusters.
Our discussion of upgrading opportunities will draw upon the major results of the
research on global value chains, which has significantly expanded the research agenda
on industrial districts. The literature on industrial districts in advanced and less
developed countries has shown that clustering helps local enterprises overcome growth
constraints and compete in distant markets8. The general argument is that
competitiveness of producers mainly comes from intra-cluster vertical and horizontal
relationships generating collective efficiency, namely increasing returns from incidental
8 For a summary of the argument and evidence see Schmitz (1995).
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