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Formal cooperation and the performance of Italian firms operating inside and outside industrial districts

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  • Jacopo Canello
  • Francesco Vidoli

Abstract

This paper discusses the impact of formal cooperation on the performance of Italian firms operating inside and outside industrial districts (IDs). The analysis is focused on a policy tool (Contratti di Rete or network agreements) introduced in Italy to promote the use of non-equity alliances among smaller firms. We claim that the impact of both inward- and outward-looking partnerships is moderated by the local environment in which member firms are embedded. The results show that the benefits from the policy measure are more evident for outward-looking agreements that do not involve ID firms. Inside IDs, firms do not seem to be capable of reaping significant gains from the use of formal cooperation. From a policy perspective, our findings suggest that decision-makers should tailor their interventions to the features of the local economic environment, promoting strategies aimed at maximizing the outcomes of formal cooperation while accounting for geographical differences.

Suggested Citation

  • Jacopo Canello & Francesco Vidoli, 2022. "Formal cooperation and the performance of Italian firms operating inside and outside industrial districts," Regional Studies, Taylor & Francis Journals, vol. 56(12), pages 2191-2206, December.
    • Handle: RePEc:taf:regstd:v:56:y:2022:i:12:p:2191-2206
    DOI: 10.1080/00343404.2022.2054977
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    Cited by:

    1. Capestro, Mauro & Rizzo, Cristian & Kliestik, Tomas & Peluso, Alessandro M. & Pino, Giovanni, 2024. "Enabling digital technologies adoption in industrial districts: The key role of trust and knowledge sharing," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    2. Idiano D’Adamo & Assunta Di Vaio & Alessandro Formiconi & Antonio Soldano, 2022. "European IoT Use in Homes: Opportunity or Threat to Households?," IJERPH, MDPI, vol. 19(21), pages 1-18, November.

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