On entrepreneur ship, region and the constitution of scale and scope economies

Abstract

This paper proposes a framework of analysis in which: (1) the constitution of new sources of economies of scale or scope is supported by systemic entrepreneurship; (2) the realization of such economies by incremental entrepreneurship takes the form of external economies, or alternatively of internal economies, together with the prevalence of different combinations of organizations, technologies and regional characters; and (3) the manifestation in the form of external economies is sustained by market rules and focused public intervention, which complement the working of markets, and which can be embedded in regional (or local) relations. Further and more specific conclusions will be referred to in the case of external economies within production systems which are assuming or are reproducing the techno‐organizational characters of flexible specialization. The standard case of the industrial district with final markets largely characterized by differentiated and variable markets falls within such application.