From Industrial Districts To Firms Networks: The Italian Case

The local source for competitiveness is vital to achieve static and dynamic economies of scale for firms; it is useful to interact with the aim of learning and innovating. The local system can create benefit by opening to international markets and it should be a good source of knowledge and technology. Nowadays, the concept of industrial district, usually characterized by the spatial proximity of the involved firms, may evolve into firms network; this may emphasize the advantages deriving from cooperation, without the need of spatial proximity. Firms networks may represent the evolution of industrial districts, where territoriality is overcome by the dissolution of borders. The importance of firms networks is increased since they intensify information exchange, continuous learning, stimulate economies of scale, allow economic development and give more market opportunities. Firms networks share different aims, resource, common interests and factors, like material and immaterial inputs and outputs. This new form of cooperation may allow to overcome physical distance and replicate knowledge and information. Firms networks may represent a success organizational forms that may give impetus to development in an economy. They are based on mutual trust between partners and are created over time to facilitate information circulation, knowledge dissemination and innovation. Trust reduces uncertainty and transaction cost and limits the opportunistic behaviour by free-rider agents. The aim of the paper is to assess the determinants for firms networks training in the Italian context using regional data. Particularly, the firms networks development needs key factors such as ICTs diffusion, high rate of social security, open capability, R&D activities. These factor constitute the basis for a new kind of capital, the so called “network capital”. It consists of collaborative practices in a network as the result of cooperation in the ICTs era. Network capital may be considered as social capital evolution in a globalized context. The entrance in the knowledge economy era, in which technological advancement runs very quickly and the pace of innovation is intensified, significantly reduces the exploitation of competitive advantages. Industrial districts, therefore, should develop, improve and change their shape in a new competitive environment, where the globalization of markets cancels the boundaries of many firms that collaborate beyond national boundaries. The paper analyzes the firms networks determinant for Italian regions and the role of network capital as pre-condition for their development. The multidimensional scaling analysis it the chosen methodology that allows us to identify the relations among Italian regions in terms of proximity/distance with respect to considered determinants, and to provide a spatial representation of them.