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Collective efficiency, policy inducement and social embeddedness: Drivers for the development of industrial districts

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  • Mario Davide Parrilli

Abstract

Where is the future of traditional industrial districts in global markets where competition is fiercer every day? This paper presents the case of the furniture district of Forlí, Italy, as a means to explain the development process, the constraints and the growth prospects that involve this industrial district and, perhaps, a wider variety of districts and SME-based clusters. We hypothesise that development is more likely to be generated when three main drivers, taken from the main bodies of literature on districts and clusters, are taken together: ‘collective efficiency’, ‘policy inducement’ and ‘social embeddedness’. The case study of Forlí helps to identify the trajectory of one among many Italian industrial districts and its solutions to deal with the new competition. Yet, our approach highlights some of the main difficulties that this district is facing nowadays and the related challenges for future development. The general lesson derived from this analysis is that traditional ways of regarding cluster development on the basis of collective efficiency need to be supplemented with an adequate weighing of the social embeddedness driver, as well as of the national and local policy environment. This approach delivers strategic analytical tools to interpret the reality of districts and to target effective development actions.

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  • Mario Davide Parrilli, 2009. "Collective efficiency, policy inducement and social embeddedness: Drivers for the development of industrial districts," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 21(1), pages 1-24, January.
    • Handle: RePEc:taf:entreg:v:21:y:2009:i:1:p:1-24
    DOI: 10.1080/08985620801886513
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    1. Mario Davide Parrilli, 2007. "SME Cluster Development," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-80150-9, December.
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    1. Pinto, Hugo & Cruz, Ana Rita & Combe, Colin, 2015. "Cooperation and the emergence of maritime clusters in the Atlantic: Analysis and implications of innovation and human capital for blue growth," Marine Policy, Elsevier, vol. 57(C), pages 167-177.
    2. Mario Davide Parrilli, 2010. "Heterogeneous Social Capitals: A New Window of Opportunity for Local Economies," Working Papers 2010R06, Orkestra - Basque Institute of Competitiveness.
    3. Pierre-Jean Benghozi & Elisa Salvador, 2014. "Are traditional industrial partnerships so strategic for research spin-off development? Some evidence from the Italian case," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 26(1-2), pages 47-79, April.
    4. Sam Tavassoli & Michaela Trippl, 2019. "The impact of ethnic communities on immigrant entrepreneurship: evidence from Sweden," Regional Studies, Taylor & Francis Journals, vol. 53(1), pages 67-79, January.
    5. F. Xavier Molina-Morales & Josep Capó-Vicedo & M. Teresa Martínez-Fernández & Manuel Expósito-Langa, 2013. "Social capital in industrial districts: Influence of the strength of ties and density of the network on the sense of belonging to the district," Papers in Regional Science, Wiley Blackwell, vol. 92(4), pages 773-789, November.
    6. Zeynep Karaca, 2018. "The Cluster Analysis In The Manufacturing Industry With K-Means Method: An Application For Turkey," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 6(3), pages 1-12.
    7. M. Isabel Sánchez-Hernández & Tomás M. Bañegil-Palacios & Ramón Sanguino-Galván, 2017. "Competitive Success in Responsible Regional Ecosystems: An Empirical Approach in Spain Focused on the Firms’ Relationship with Stakeholders," Sustainability, MDPI, vol. 9(3), pages 1-18, March.

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