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Abstract
The paper explores the process of production internationalisation of local production systems with a special concern for the tension between embeddedness and openness, and with the governance structure of international networking. Local production systems are prompted to look beyond their local borders by the need to access knowledge, competences, as well as goods and services. Beyond a concern with territory, the possibility of multinational networks has been conceptualised as a mesh of local production systems cemented by production and socioeconomic relations. Drawing on the conceptual hypothesis of multinational networks, the paper proceeds to analyse the process of international outsourcing of Italian industrial districts as an application. The opening up of districts has taken place at the same time as a process of internal hierarchisation due to the emergence of leading groups. The paper reflects on how industrial districts have tended to generate abroad similar forms of agglomerations replicating the industrial district model, as well as presenting some preliminary considerations on the link between the governance of the local production system and the governance of its external networks.
Notes
Notes
1. Sacchetti and Sugden Citation2005a, 2005b.
2. On the link between innovation and the extent of inter-firm cooperation and networking, see De Propris Citation2002.
3. See Putman (Citation2000) on bonding relations and social capital.
4. See for instance Becattini Citation1990.
5. Markusen Citation1996.
6. Sugden Citation1997, Cowling and Sugden Citation1999.
7. For a discussion of the importance of diversity and heterogeneity, see Lagenijk and Oinas Citation2005.
8. For a discussion on the emergence of district groups, see Brioschi et al. Citation2004, Fortis Citation2004.
9. The increasing importance of medium-sized firms and the subsequent formation of groups were also witnessed outside industrial districts. For an analysis of the phenomenon inside and outside districts, see Cainelli et al. Citation2006.
10. For a discussion on the internationalisation of industrial districts see Tattara and Crestanello Citation2003.
11. Italy has 20 regions corresponding to EU NUTS 2.
12. The very limited number of cases of local labour markets located across two or more regions has been solved by applying the rule of the dominant region (the region where the highest number of municipalities that are included within the local labour market boundaries is located).
13. The use of processing trade data is becoming increasingly important in the analysis of the international fragmentation of production even in international economics, see for instance Egger and Egger (Citation2005).