Patterns of Innovation in Industrial Districts: An Empirical Analysis

Research has proved how the industrial district model can deliver sustained economic growth and sustains firms' competitiveness. Studies have also shown how spatial proximity helps in the process of knowledge generation and diffusion. Indeed, the literature on industrial districts since the earliest studies has stressed how districts are “loci” where sustained innovation activity is undertaken. However, this innovative dimension of districts' activities has not yet been fully explored. Sufficient theoretical background and empirical evidence as to whether the peculiar socio-economic characteristics of the industrial district model influence firms' innovation performance and the way innovation activity is carried out is lacking. The aim of this paper is thus to explore the determinants of innovation activities in firms located inside and outside industrial districts in the Italian region of Lombardy, investigating whether the district provides a favourable environment for the development of innovations and identify possible competitive advantages.