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Industrial districts: something more than a neighbourhood

Author

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  • F Xavier Molina-Morales
  • M. Teresa Martínez-Fernández

Abstract

The expansion of globalization has led to the relocation of many industrial activities. In particular, this process has affected industrial districts in the traditional industries. However, different districts vary in their capacity to retain activities. The robustness of industrial districts and, in consequence, their capacity to retain core activities at home and thus avoid painful relocations can be analysed by means of the relational capital developed at the district level. The relational structure within the district affects and determines the capacity of innovation of the district firms. This paper analyses the extent to which innovation depends on the amount of relational capital developed at the district level. We have addressed this proposition using internal human mobility, shared vision and trusting co-operation as indicators of the amount and quality of relational capital. In order to support theoretical propositions we have conducted empirical research comparing different industrial districts in the Valencian region of Spain. Research findings suggest a significant association between social capital variables and innovation outcomes. In consequence, these factors can facilitate retaining activities in districts.

Suggested Citation

  • F Xavier Molina-Morales & M. Teresa Martínez-Fernández, 2006. "Industrial districts: something more than a neighbourhood," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 18(6), pages 503-524, November.
  • Handle: RePEc:taf:entreg:v:18:y:2006:i:6:p:503-524
    DOI: 10.1080/08985620600884750
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    Cited by:

    1. Anna Lejpras, 2015. "Knowledge, location, and internationalization: empirical evidence for manufacturing SMEs," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 24(8), pages 734-754, November.
    2. Rodrigo-Alarcón, Job & García-Villaverde, Pedro M. & Ruiz-Ortega, María J. & Parra-Requena, Gloria, 2018. "From social capital to entrepreneurial orientation: The mediating role of dynamic capabilities," European Management Journal, Elsevier, vol. 36(2), pages 195-209.
    3. Tomlinson, Philip R., 2010. "Co-operative ties and innovation: Some new evidence for UK manufacturing," Research Policy, Elsevier, vol. 39(6), pages 762-775, July.
    4. Tomlinson, Philip R. & Fai, Felicia M., 2013. "The nature of SME co-operation and innovation: A multi-scalar and multi-dimensional analysis," International Journal of Production Economics, Elsevier, vol. 141(1), pages 316-326.
    5. Angelo Cavallo & Antonio Ghezzi & Alessandra Colombelli & Gian Luca Casali, 2020. "Agglomeration dynamics of innovative start-ups in Italy beyond the industrial district era," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 239-262, March.
    6. Hervas Oliver,Jose Luis & Gonzalez,Gregorio & Caja,Pedro, 2014. "Clusters and industrial districts: where is the literature going? Identifying emerging sub-fields of research," INGENIO (CSIC-UPV) Working Paper Series 201409, INGENIO (CSIC-UPV).

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