In search of a theory of spatial clustering: agglomeration vs active clustering

The aim of this chapter is to present an overview of the various mechanisms of knowledge creation, diffusion, and assimilation, which are found within the so-called Italian «districts ». For this type of analysis we use a wide definition of «local production systems» (Becattini and Rullani, 1996; Belussi, 1999; Belussi and Sammarra, 2005), which includes: typical industrial districts formed by small firms, multi-sector district areas, local systems governed by large leading firms, and various aggregations of productive systems in territorial clusters. Following the Marshallian tradition, industrial districts have been characterised as system where knowledge automatically spill over from the more knowledgeable agents, and where new ideas are promptly adopted. In the economic and business literature, the suggestions derived from the classical reading of Marshall have often been wrongly applied up to build a stereotyped and ideal model of the industrial district (where, automatically, we can observe at work the benefits of spatial agglomeration). This is clearly strongly in contrast with the empirical evidence, based on numerous countries, that shows an heterogeneous array of dynamic and backward industrial districts or clusters. Combining the Marshallian argument of “spillovers” with the evolutionary perspective related to the role of Schumpeterian agents in transforming new knowledge into new products and products (Freeman, 1982; Belussi and Gottardi, 2000), thus bringing into their firms new combinations of inputs, we will present an analytical frame where the mechanisms of knowledge creation and learning in the industrial districts are highlighted.