The Emilian Model Revisited: Twenty Years After

In the early 1980s Emilia-Romagna drew wide attention as a case of successful industrialisation based on small and medium-sized firms clustered in industrial districts intermingled with social cohesion and integration assured by the hegemonic role played by the Italian Communist Party (PCI) in the region. Twenty years after, the Emilian economy seems to have regenerated its competitive advantage. This resulted from important changes involving both the industrial structure and the governance structure. As to the former, a restructuring of local industry led to the formation of business groups, the rise of lead firms, the emergence of distant networks, the introduction of computer-based technologies, and an increasing variety in the evolutionary paths of the various districts. As to the latter, the disappearance of a Communist political subculture and the transformation of the ruling party from the PCI into fistly the PDS and then the DS brought about a change in the governance structure which was marked by an increased reliance on business associations in both designing and managing industrial policies. As a result, these shifted towards a market-driven approach, focused on induvidual firms and, above all, lead firms rather than industrial districts.