Italian industrial districts on the move: Where are they going?

Since the second half of the 1990s the Italian economy has experienced a significant slowdown in the rate of economic growth. The "dwarfism" of its manufacturing firms, their specialization in traditional sectors and their organization in industrial districts have been identified by many scholars as major structural weaknesses in the Italian industrial system. Nevertheless, there is a vast and flourishing empirical literature showing that many industrial districts are actually changing in terms of sector specialization, international and innovation strategies and emergence of new forms of enterprise organization. In this paper, we provide a critical survey of the new and different patterns of industrial organization emerging in industrial districts.