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Abstract
Industrial districts and clusters of small- and medium-sized enterprises specializing in manufacture are an important feature of the Italian economy (Becattini, G. & Coltorti, F. (2006) Areas of large enterprise and industrial districts in the development of post-war Italy. A preliminary survey, European Planning Studies, 14(8), pp. 1105–1138). The textile district of Prato is an exemplary case of the industrial district model (Becattini, G. (2001) The Caterpillar and the Butterfly. An Exemplary Case of Development in the Italy of the Industrial Districts (Felice Le Monnier: Firenze)), contributing 25% of the Italian exports of woollen products. The paper analyses the recent transformations of Prato facing the winds of globalization and in particular the dual challenge of global pressure from outside the district (due to competition from new industrialising countries) and from inside it (due to an ethnic economy formed by Chinese immigrants). The paper concludes with some recommendations for the revitalization of local development, and sketches a possible course for the Prato district.
Acknowledgements
Previous versions of this paper were presented at the International Workshop on Regional Innovation in Traditional Industries, organized by the Centre for Advanced Studies of Cardiff and the Scuola Superiore Sant'Anna of Pisa in Volterra (Italy) on 23 June 2007, and at the 11th International Conference of EUNIP (European Network on Industrial Policy) held by the Universidad de Deusto in San Sebastian (Spain) on 10–12 September 2008. The author would like to thank the participants in these meetings for helpful comments. The author has also benefited from the suggestions of anonymous referees in the revision of the paper. Only the author is responsible for ideas and opinions contained in the paper.
Notes
On the importance of the industrial districts in the development of post-war Italy, see, for example, Becattini and Coltorti Citation(2006) and Becattini and Dei Ottati Citation(2006).
Among the by-now vast theoretical and empirical literature on industrial districts, we mention only the following writings in English: Becattini (Citation1990, Citation2003, Citation2004); Becattini et al. Citation(2003) and Brusco (Citation1995, Citation1999).
On the post II world war development of Prato, see Becattini Citation(2001); Dei Ottati (Citation1994, 1996); Lazzeretti and Storai Citation(2003) and IRIS (Citation2001).
Cf. Ciocca (Citation2004, p. 8).
The balance of Italian foreign trade in goods for the person and the home in 1996 and 2001 amounted, respectively, to 37 and 41 billion Euro and that relating to light engineering in the same years 31 and 40 billion Euro. Cf. Becattini and Dei Ottati Citation(2006). On “Made in Italy”, cf. Becattini and Menghinello Citation(1998) and Fortis Citation(1998).
In Italy, the number of residence permits doubled between 1995 and 2001, rising from 729,159 to 1,448,392 (Caritas Report on Migrants, 2006).
On the changes in the district of Prato in the eighties, Cf. Dei Ottati Citation(1996). On the evolution of the different populations of specialized firms of the Prato district in the period 1946–1993, cf. Lazzeretti and Storai Citation(2003).
Typically, district firms are specialized in a few activities. A fundamental distinction is between “final firms” and “phase firms” or specialized subcontractors. “Final firms” are those that specialize in the design and marketing of the products, which they usually contract out to other mainly local “phase firms”. The latter, instead, are specialized in one or a few phases of the production process of the localized industry.
On teams and small groups of firms in the Prato district, cf. Dei Ottati Citation(1996).
On the relations of non-exclusive subcontracting also on the part of phase firms belonging to teams of enterprises connected by ownership relations, cf. Colombi and Dei Citation2001, pp. 103–104.
Balestri (Citation1998, p. 21).
Cf. Becattini and Dei Ottati Citation(2006).
In the Prato district (12 municipalities), between the 1991 census and that of 2001, the number of spinning establishments dropped overall by 789, and those spinning carded wool by 971. Similarly, the 2001 census recorded 1669 fewer weaving establishments when compared with 1991, whereas the number of establishments specialized in the weaving of carded wool dropped by 2313.
Establishments engaged in the weaving of combed wool increased by 554 between 1991 and 2001, whereas those engaged in the spinning of other textile fabrics increased by 656 and the manufacture of different textile articles registered 246 more establishments in 2001 than in 1991.
In particular, the imports of yarns in the province of Prato went up by 96% between 1991 and 1995 and by 28.7% between 1996 and 2001.
From a survey carried out in 1997 on a representative sample of firms, it emerges that, at the date of the survey, the textile final firms of Prato applied to local manufacturing firms for approximately 90% of the work subcontracted. From the same survey, it also emerges that 46% of the purchases of semi-finished goods outside the district took place in other regions of Italy and 39% abroad and that the goods purchased were usually different from the ones produced locally. Cf. Bigarelli (Citation2001, pp. 41–42).
The importance of creativity as a factor of competitive advantage in the Prato textile firms is illustrated by another of the results emerging from the aforementioned survey: 95% of the production of the Prato final firms involved articles that were conceived and designed internally. Cf. Colombi and Dei (Citation2001, p. 112).
Cf. Dei Ottati and Grassini Citation(2008).
On the computer services in the Prato district, cf. Bellandi and Trigilia Citation(1991).
On the peculiar form of integration of the division of labour in industrial districts and the interaction between competition and cooperation in the district organization, cf. Dei Ottati (1991, 1994).
The number of clothing establishments in the 12 municipalities of the Prato district increased by 14% between 1991 and 1996 and by 41% between 1996 and 2001. On the basis of the census data, employment increased more between 1991 and 1996 than between 1996 and 2001; nevertheless, since it was above all the second period that witnessed the multiplication of Chinese workshops, there is reason to believe that in 2001 the effective figures for employment were much higher than those revealed by the census.
On the emergence and early development of knitwear in Prato, cf. Toccafondi Citation(1992).
On the clothing industry in the Prato district when compared with that of the Province of Arezzo, cf. IRIS (2001, pp. 77–100). On the Chinese and the clothing industry in Prato, see Colombi et al. Citation(2002); Toccafondi (Citation2005, Citation2009) and Ceccagno (Citation2003, Citation2009).
Successful cases of Prato clothing firms belonging to the small group of high quality production are, for example, Patrizia Pepe, Sasch or Sonia Fortuna.
Between 2001 and 2005 in Italy, there was an average annual growth rate of 0.3% and in Germany of 0.6% (International Monetary Fund data). The factors that have contributed to accentuating the recession of the start of the new millennium include the terrorist attack in New York on 11th September 2001 and the ensuing military decisions, which have increased uncertainty on the international markets.
Cf. ICE (Citation2006, p. 332).
Actually, between 2001 and 2005, the Italian share of world textile exports dropped, passing from 8.7 to 7%; while the Italian share for clothing increased, albeit slightly, in terms of value: 5.8% in 2001 and 5.9% in 2005 as a result of quality upgrading. Cf. ICE (Citation2006, p. 332).
Between 2001 and 2003, the overall export of textile products of the Province of Prato fell by 25.5% (passing from 2412 to 1796 million Euro) and those of fabrics—the principal product of Prato—fell by 26%.
For an analysis of the financial statements of the Prato textile firms between 2001 and 2004 indicating the fall in profitability and the simultaneous reduction in investments and workforce, cf. Giunta and Bonacchi (Citation2006, p. 22).
In the Province of Prato, establishments in all sectors went up by 10% between 1991 and 2001 (ISTAT Industry censuses) and by 5% between 2001 and 2005 (based on the data of the Prato Chamber of Commerce).
Since the only data available on the total population of firms after the 2001 Industry Census are those of the Chamber of Commerce which are by Province, for the years 2001–2005, we had to restrict the analysis to the area covered by the seven Municipalities of the Province of Prato rather than the 12 Municipalities of the Prato industrial district as in the Census interval 1991–2001. Moreover, as Census and Chamber of Commerce data are not strictly comparable, reports only percentage variations.
On the basis of the data of the Chamber of Commerce of Prato, local establishments in sector (K) of business services and real estate activities went up by 23% between 2001 and 2005.
On the basis of the Prato Chamber of Commerce data, the Chinese ethnic clothing firms in the Province were 1210 in 2002 and rose to 1688 in 2005; the Pratese clothing firms, instead, fell from 669 in 2002 to 399 in 2005.
Data of the Prato City Council. It should be noted that the number of residents is always lower than the number of persons in possession of residence permits and that the latter, in turn, is lower than the actual number of immigrants.
On the economic development of the Wen-Zhou Municipality, Cf. Wu Citation(2009).
On the birth of the Prato industrial district, Cf Dei Ottati Citation(1994).
Out of the 197 Chinese wholesale trade and intermediation firms, 65 are joint-stock companies. On the recent evolution of foreign enterprise and Chinese in particular in the Province of Prato, cf. Caserta and Marsden Citation(2007).
On the formation of a dualistic economy as a consequence of the Chinese immigration in an industrial district, Cf. Mistri Citation(2005).
On the peculiar advantages of the Chinese ethnic businesses in Italian industrial districts, cf. Dei Ottati Citation(2009).
For evidence, see Rastrelli Citation(2003).
Cf. Fladrich Citation(2009).
On district reproduction processes, see Becattini Citation(2003).
On district external economies, see Dei Ottati Citation(2006).
On the distinction between the “low road” and the “high road” to competitiveness, see Sengenberger & Pyke Citation(1992).
On local governance of progressive reactions to global challenges, cf. Bellandi Citation(2008).