From local networks of SMEs to virtual districts? Evidence from recent trends in Italy

Industrial districts as local networks of small and medium enterprises (SMEs) rooted their competitiveness in a mix of economic relationships and social ties. Recently, network technologies have promised gains of efficiency through a reduction in transaction costs and showed new commercial opportunities for small firms. Despite the morphological similarities between industrial districts and network technologies, a longitudinal analysis of ICT diffusion within Italian districts shows that the foreseen convergence between the district economic model and new technologies should not be taken for granted. The observed specific evolutionary paths concerning technology innovation in local systems also opens-up issues of economic policy. (C) 2004 Elsevier B.V. All rights reserved.