The Emilian model: Institutional challenges

The paper reviews recent developments in the industrial districts of Emilia‐Romagna in Italy. It notes the key question as to whether the enterprise support system for SMEs, that has proved of such value to local and global competitiveness, continues to work as well as it did in the past. This is important because the nature of competition has changed, placing an even greater stress on innovation and learning. Of particular interest is whether the Emilian model enables networks of firms to shift their trajectories from established to new industrial objectwes. New initiatives, originating from the hitherto less successful parts of the Emilian economy are described and conclusions drawn.