Knowledge and Information Networks in an Italian Wine Cluster

The aim of this article is to analyse the nature and extent of knowledge and information networks in an Italian wine cluster. Moreover, the relation between firms’ characteristics and the knowledge network structure is also explored. The empirical findings show that knowledge is unevenly distributed in clusters and that networks of knowledge and information differ a great deal in terms of their structure. In fact, knowledge flows are restricted to a tightly connected community of local producers, differing in terms of knowledge assets, innovation behaviour and overall economic performance with respect to the rest of the firms in the cluster.     

A stage and eclectic approach to industrial district development: two policy keys for ‘survival’ clusters in developing countries

This article analyses the history of Italian industrial districts (IDs) to identify lessons to help small and medium‐sized enterprise (SME) clusters in developing countries to move to higher stages of development. Transforming the 1990 seminal work of Brusco on distinct models of SME clustering into a stage approach, this article identifies a sequence of different maturity stages which the IDs passed through: initial craft production; industrialization through large firms; the fragmentation of production followed by the growth of smaller specialized units; and, finally, new routes to innovation and competitiveness. These phases help explain how development is a stage process which needs to be carefully considered and not rushed, through attempting to cross too many stages at once. Realistic steps are always necessary to create an effective base for growth. Furthermore, a theoretical framework is presented, which identifies three factorial levels that have intervened in the ID development process over the past 50 years. Economic, policy and social factors are identified and presented as drivers that work together to produce the structural changes that explain an effective development process. The final section emphasizes the relevance that this kind of analysis can have on the policy‐making schemes being applied in developing countries, with special reference to less developed types of clusters.     

Introduction: Reconsidering Futurism

The financial crisis hit Italy harder than many other Eurozone countries. In part this was due to the fact that the crisis came upon a system that was weakened by years of sub-par economic growth. One of the several endogenous factors that explain the stagnation of the Italian economy is the weak corporate governance in the industrial sector and parts of the financial one. A framework that was designed to maintain stability in the ownership of companies and of certain types of banking institution ultimately led to an inefficient allocation of capital and to a lack of investment, which contributed to the loss of competitiveness of Italian firms in a fast globalizing marketplace.     

Industrial clusters,organized crime,and productivity growth in Italian SMEs

We examine whether organized crime affects firms’ performance (defined using Total Factor Productivity growth) both directly and indirectly, by downsizing the positive externalities arising from the geographic concentration of (intra‐ and inter‐industry) market‐related firms. The analysis uses a large sample of Italian small‐ and medium‐sized manufacturing firms over the period 2010–2013. The results highlight the negative direct effects of organized crime on firms’ productivity growth. Any positive effect derived from industrial clustering is thoroughly debilitated by a strong presence of organized crime, and the negative moderation effect of organized crime on productivity growth is greater for smaller than for larger firms.     

Italian Industrial Districts on the Move: Where Are They Going?

Since the second half of the 1990s the Italian economy has experienced a significant slowdown in the rate of economic growth. The “dwarfism” of its manufacturing firms, their specialization in traditional sectors and their organization in industrial districts have been identified by many scholars as major structural weaknesses in the Italian industrial system. Nevertheless, there is a vast and flourishing empirical literature showing that many industrial districts are actually changing in terms of sector specialization, international and innovation strategies and emergence of new forms of enterprise organization. In this paper, we provide a critical survey of the new and different patterns of industrial organization emerging in industrial districts.     

Dynamics of Industrial Districts and Business Groups: The Case of the Marche Region

Italian industrial districts are undergoing fundamental changes due to globalization. Taking a firm perspective, we argue that the analysis of firm strategies, in particular the rise of business groups, is key to understand the organizational adjustments industrial districts have recently gone through. Due to the typical family structure of industrial district firms in the Marche region, as in other fragmented Italian districts, the organizational form adopted by firms to manage growth is that of the business group. We evaluate the empirical relevance of business groups in the Marche region, and we describe different transition strategies that turned firms into business groups.     

Looking in the wrong direction? Reflections on Italy's most recent ‘crisis’

This paper argues that, rather than focus on Italy's well-known institutional deficits, especially vis-à-vis its larger, more prosperous European neighbours, we should examine instead the experiences of another set of countries (India, Israel, etc.) that have promoted economic reform and growth through entrepreneurship. Relying on cross-national networks to provide local firms with capital, technology, market access and managerial skills, firms in these other countries were able to supplement or even circumvent institutional deficiencies in their home countries and build successful enterprises. Perhaps a similar strategy could be pursued by Italy's small and medium-sized firms and thus help relaunch growth in the Italian economy.     

The Role of Leading Firms in the Evolution of SME Clusters: Evidence from the Leather Products Cluster in Florence

Clusters that emerged in the past have changed during the latest decades, so that today the research challenge in economic geography is on their evolution over time. The aim of this paper is to update the evolutionary path of SME Italian clusters, which faced the economic crisis are undergoing a process of decline in the number of firms. Furthermore, changes in the techno-economic landscape and in the competitive environment have generated new challenges. In this context, some leading firms, able to connect local resources (and firms) to global networks, have emerged over time and today they act as a gatekeeper. The focus will be on local networks interacting with leading firms and particular attention will be devoted to the pattern of co-evolution and to the geographical dimension of this co-evolutionary process. To empirically verify if other firms in the cluster may co-evolve with the leading firm over time, a deep analysis of the Gucci network in the leather products cluster in Florence will be carried out.     

Global Value Chains and Open Networks: The Case of Italian Industrial Districts

Italian district small and medium enterprises (SMEs) developed aggressive strategies to extend their sales networks and supply chains abroad. Literature on districts offered alternative explanations about the impacts of internationalization on local manufacturing systems. The authors consider the evolution of Italian districts in the framework of global value chain approach, focusing on the role of leading firms. Based on a survey of 650 Italian SMEs and financial indicators, the paper describes the rise of a new district firm model, the open network, which becomes a key node of global value chains. The paper also analyses the relationships among internationalization, innovation strategies and performance of SMEs.     

Italian Industry,Decline or Transformation? A Framework

Debates over Italian growth (or lack thereof) are often conducted without due regard for the facts and statistics on which they are based. For instance, those who see Italy as being in decline lament the static production, the lack of increase in productivity, the loss of share in international markets and the lack of sophistication in industrial goods compared with high-tech products. Some call for greater emphasis on services, others want manufacturing to be abandoned, while others see the future in artisanship. These issues are important, because flawed judgement of Italian performance could lead to deterioration in the results expected at the critical financial market phases, beyond what might be justified by the facts. The purpose of this article is to establish a micro- and macro-framework to interpret the problems correctly, given the inconsistency of statistical data currently used, and to offer some solutions for long-term growth. The latter, in particular, should be seen in the context of a transformation process, induced on the one hand by the crisis in large-scale enterprise, and on the other by the emergence of a new class of medium-sized businesses, dubbed the “fourth capitalism”, with high innovation capabilities. The transformation that the Italian industrial system is experiencing enables the country to maintain its share of global markets. The new production structure originates largely from local production systems, is family-owned and tends to borrow little, operate in networks and retain its local roots, which is precisely why it represents a new and efficient driver of Italian growth.     

Life Sciences in the Netherlands: Weakness in a Strong National Policy

The Netherlands is an example of a European country in which the commercialization of knowledge is hampered by a somewhat risk-averse culture at universities and a shortage of venture capital for early growth of start-up firms. This article addresses the policy programme in the Netherlands to improve the situation for the life sciences since the early 2000s. The target number of newly established firms could easily be achieved and the programme was able to improve the business climate for new firm establishment. However, the programme could not improve conditions for growth of new firms because it could not achieve a comprehensive turn in the business climate, due to the short cycle-time of the programme (4–5 years). In addition, the programme did not take advantage of existing critical mass in the largest cluster or from any other competitive strength of particular clusters. These circumstances were influencing a relatively large number of small and vulnerable firms. The article concludes with a set of insights from which lessons can be drawn.     

A rentier class? Milanese nobility and the economy in post-unification Italy

ABSTRACT

The Lombard nobility’s loss of political power after the Napoleonic Wars has led economic historians to overlook the persisting role of traditional elites in social and economic life. The aim of the paper is to reassess the contribution of the Milanese aristocracy to Italian economic development, providing new insights into the business behaviour of the nobility in northern Italian areas. The article presents some new findings on noblemen’s investments and enterprises related to agriculture, manufacturing, trade and banking. The research focuses on the decades following Italian political unification, a period in which noblemen increased their interest in the financial sector and joint-stock companies (transport, banking, new sectors and industries) as a result of the transformations induced by the Industrial Revolution and the agrarian crisis of the 1870s and 1880s. Both quantitative and qualitative data will be used to assess not only the number of individuals involved and the capital they invested in new ventures, but also their role in orienting, stimulating, managing or supporting entrepreneurial activities and their openness to collaboration with the members of the middle class. The analysis combines the deeds produced by four notaries, chosen on the basis of their contiguity to the Milanese aristocracy, the foundation’s deeds of the main companies established in the city, conserved in the House of Trade, and the information provided by other local and national institutions. The cross-referencing of this data suggests that the Milanese nobility maintained a prominent economic role well beyond Italian political unification, contributing to the modernization of the national economy despite the weaknesses and contradictions that marked this process.     

The Industrial District and the 'New' Italian Economic Geography

The industrial district is one of the theoretical concepts by which Italian economic geography has redefined a large part of its scientific and methodological status. The successful of industrial district is linked to the explanation of the Italian model of light industrialization, that is to the role played by small firms in Italian manufacturing industry. Nevertheless, it is worthwhile to know that industrial district was introduced as a theoretical paradigm to stress the territoriality of the production process and the gain of productiveness and innovativeness for the firm which sources from the embedding of economic activity within the local society where the production takes place. Support for this approach is found in the Marshallian external economies. This article addresses the importance of industrial district from the point of view of this neo-Marshallian reading of the organization of production. This framework of reference provides the basis for the formulation and implementation of local policies which recast traditional economic, social and infrastructural ones as specialist policies aimed at the creation of the institutional and environmental conditions for the competitiveness of places.     

Staying Power: What Influences Micro-firm Survival in Tourism?

Abstract

The purpose of this paper is to investigate how previous experience and location of entrepreneurs influence the survival of new tourism firms. The paper departs from recent evolutionary economic geography advancements, highlighting the importance of routines and skills as well as location-specific knowledge for firm success. While having been well-researched for manufacturing industries characterized by high entry barriers, little knowledge is currently available on the factors influencing survival rates in service sectors with low entry barriers. A quantitative approach applies hazard models to investigate the survival rates over a seven-year period of a total of 133 new micro-tourism firms started between 1999 and 2001 in the four northernmost counties of Sweden. The geo-referenced micro-database ASTRID links information on firm features (e.g. firm births and deaths, spatial coordinates and industry codes) to characteristics of entrepreneurs (e.g. age, education, previous experience). The main finding is that entrepreneurs with previous work experience in related sectors are more likely to survive and, in this case, entrepreneurs without local experience tend to be less successful. We find no evidence that new firms operating in regions specialized in tourism have a survival advantage. Our analysis also indicates that surviving firms improve performance over time. The paper thus contributes new knowledge on the determinants of micro-firm survival in tourism.     

International Economic History Congress

Abstract

Elda Pavan Cecchele was an Italian hand-weaver who began by producing household linen at the end of the 1930s. She produced hand-woven fabrics for firms such as Salvatore Ferragamo in the early 1950s and Roberta di Camerino from the 1950s to the 1960s; these designers were active on both the Italian and international fashion scene. These fabrics were used in clothing, accessories and furnishings. This article examines Cecchele’s significant contribution to the creation of important fashion items and collections. Like many other artisans, her contribution proved decisive but she worked in the background and had no public recognition. Surviving records from Cecchele’s workshop, including samples, design notebooks, designs and documents, are now in a private archive. Access to this material, together with numerous interviews with her former customers and collaborators, have enabled her abilities to be rediscovered and the re-evaluation of her artistic contribution to Italian fashion.     

Medium-Sized Firms and the Limits to Growth: A Case Study in the Evolution of a Spin-Off Firm

This paper explores potential barriers to growth in key areas which can become increasingly problematic for some smaller to medium-sized firms (SMEs) as they grow and evolve from their early status as small scale spin-offs. These potential growth barriers can occur in: finance, competition from new firms or products and organizational integration of resources. Firms that fail to properly plan, manage and allocate resources will encounter difficulties in each area. Such firms are said to have poor 'governance systems'. While not proposing a universal theory about small firm behaviour, we argue that firms can encounter the same problems associated with poor communication, bureaucracy and loss of entrepreneurial spirit that plague large firms. We also show that the routines used to promote growth based on collaboration can sometimes create problems for firms as they ignore new challenges. We elaborate various theories on the limits to growth by examining the case of IV, a university spin-off.     

Supplier linkages of foreign-owned manufacturing firms in the UK: the influence of entry mode,subsidiary autonomy and nationality

This article tests the hypothesis that the supplier linkages which subsidiaries of foreign-owned companies make with indigenous firms in the UK are influenced by entry mode, the amount of autonomy which is granted to the subsidiary which is established and the nationality of the parent company. Data were collected from foreign-owned firms in the UK and an ordered probit model with the change in supplier linkages as the dependent variable was devised and tested. The results provide support for the hypothesis in terms of entry mode and subsidiary autonomy, but not in terms of parent nationality. This study represents a new approach to the study of supplier linkages and integrates concepts and studies from both regional science and international business. Foreign-owned firms which entered the UK by means of a greenfield entry tend to have a relatively positive effect on the creation and growth of supplier linkages, whereas those which entered by way of a merger or acquisition tended to have a relatively negative effect on the growth of such linkages. This finding has important implications for academics and policy-makers alike. Although the potential impact which the creation of supplier linkages can make upon the host country's economy has long been recognised, little research has been undertaken to identify the key factors which affect such growth. With increased levels of globalisation it is important that governments are able to maximise the impact which foreign direct investment makes upon the economy of their countries.     

Twenty‐first Century Industrial Policy in a Small Developing Country: The Challenges of Reviving Manufacturing in Rwanda

The Rwandan government — widely lauded for its political commitment to development — has refocused its efforts on reviving growth in the manufacturing sector. This article examines how pressures from different levels — international, regional and domestic — have shaped the evolving political economy of two priority sectors (apparel and cement). To achieve its goals of manufacturing sector growth, the Rwandan government aims to access foreign markets (on preferential terms) and larger regional markets while developing effective state–business relationships with locally based firms. Despite the government's political commitment to reviving its manufacturing sector, its strategy has been both shaped and impeded by shifting pressures at the international level (through Rwanda's recent suspension from the African Growth and Opportunity Act), the regional level (through competition from regional firms) and the domestic level (through over‐reliance on single firms). Within the current industrial policy literature, there is limited reflection on how developing countries are dealing with the multi‐scalar challenges of enacting industrial policy in a much‐changed global trading environment. This article contributes to the industrial policy literature by addressing this lacuna.     

Missing an opportunity: the Italian Mezzogiorno's trading troubles during European integration

Among the many troubles that southern Italy's economy is facing, its deficient trade performance receives little attention. Yet the Mezzogiorno's comparative disadvantage in trade is a recurring theme in the long history of Italian inter-regional disparities. Adverse conditions for firms in tradeables persist while European integration opens up new opportunities for this sector to expand. In this paper, a dataset of employment rates in tradeable and non-tradeable sectors from 2000 to 2010 is constructed to analyse the strength and development of the Mezzogiorno's export base during European integration. The analysis shows that the new trade opportunities alone did not suffice to even the Mezzogiorno regions' road to export orientation.     

Italian Jews: From Social Integration to the Construction of a New European Identity

In this article I discuss the history of Italian Jews from the Emancipation to the racial laws of 1938 and their present-day attitudes to Judaism and the State of Israel. My aim is to suggest how the policy of social integration enabled Italian Jews to construct a new identity without losing their ancestral heritage. The example of Italian Jewry is relevant to understanding the growing need in today‘s European Union—now comprising 27 countries with different languages, cultures, and values—of revising the concept of national identity and of exploring ways of constructing a new European identity.