The Italian industrial districts and the crisis of the cooperative form: Part I

Abstract

The theory of the industrial districts—spatial clusters of mutually supporting, mostly small and medium‐sized, flexibly specialized enterprises, held together by virtue of their deep local embedding and relations of trust—is now a well‐developed part of regional planning doctrine and folklore. The canonical cases are those located in the so‐called Third Italy’. In Part I of this paper, I review the theory, and present the first of three case studies, each of which challenges one or another fundamental element of the district model. Here, I consider evidence of penetration into the Emilian food packaging machinery district by outside financial interests, which have proceeded to impose hierarchical order on what had previously been more collaborative relations among more or less symmetrically powerful firms. The remaining two cases—on the emergence of vertical production systems in the clothing sector of the Veneto, and on the contradictions of excessive fragmentation in the production of Pratese woolen textiles—will be presented in Part II. These cases do not point to economic failure, per se, but they do (I think) point to an underlying contingency and ultimate instability of the canonical district form.