Districts, multinationals and global/digital networks Article 

Accepted Version 

Castellani, D., Rullani, E. and Zanfei, A. (2017) Districts, multinationals and global/digital networks. Economia e Politica Industriale, 44 (4). pp. 429447. ISSN 03912078 doi: https://doi.org/10.1007/s4081201700794 Available at http://centaur.reading.ac.uk/73107/ 

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EconomiaePoliticaIndustriale-JournalofIndustrialandBusinessEconomics

Aspecialsectionon"GiacomoBecattini,industrialeconomics,andlocaldevelopment"

Districts,multinationalsandglobal/digitalnetworks

DavideCastellani(HenleyBusinessSchool,UniversityofReading,UK)EnzoRullani(IUV,Italy)

AntonelloZanfei(DESP-UniversitàdiUrbino,Italy)

Abstract

ThispaperreflectsonwhatremainsofBecattini’sutopiainthenewcontextofaglobalizedanddigitaleconomy.Canonestillforeseeaglobalworldpopulatedwithlocalsocietiesabletoproducevaluebyfollowingtheirowninspirationsandchorallyparticipatinginaworld-widedivisionofcognitivelabor?ItissuggestedthattheinterpretivevalueofBecattini’stheorizingremains,totheextentthatonemovesawayfromtheconsiderationoftheclassicaldistrictmodel,andadoptshismoregeneralwayofthinkingabouttheeconomy,whichisonlyexemplifiedbythehistoricalcircumstanceofindustrialdistricts.Hisviewmaywellapplytoavarietyofcircumstances,notonlytoindustrialdistrictsanditisflexibleenoughtoencompasseconomicchangeunderdifferentenvironmentalconditions.

Key-words:Industrialdistricts,Innovation,MNEs,DigitalEconomy,Globalisation

JEL:L5,O4

1. BeyondtheFordistdualismbetweenmarketandhierarchy

Intheseventies,thecrisisofthemassproductionmodelnamed“Fordism”hasforcedscholarsandpractitionerstoconcentratetheirattentionontheroleof“territories”wherethegenerationofeconomicvalueoccurs.Agreateremphasishasbeenplacedonsuchexpressionsoftherealworldas:theindustrialdistrictsinItaly;Just-in-timesupplycircuitsorchestratedbythecustomer,inJapan;urbanandregionalinnovationclusters,suchastheSiliconValleyinCaliforniaandtheGlennValleyintheUK.

Territorialecologiesarecomplexsystemsofcomplementarystructuresandresourcesinheritedfromthehistoryofthesite.Theyinvolvebusinessesandpeoplewhointeractonthebasisofasetofsocial,culturalandeconomicfactorsfacilitatingcommunicationandtransactions,including:trust,atacitsharingofmeaningsandlanguages,networksofcontractuallinksandofsocialrelationsamongthedifferentparticipants.ThecompetitivesuccessoftheseecologiesinreactingtothecrisisofFordismhaspersistedforarelativelylongperiodoftime(roughlyfrom1970to2000),revealingwaysofgeneratingvaluethatcanhardlybeconsistentwithconventionaltheorizingineconomics.

InItaly,GiacomoBecattini-alongwithseveralothers(includingBrusco,Fuà,BagnascoandMessori)–hasgivenafundamentalcontributiontoafirstsilentandthenmoreandmorevisiblerevolutioninindustrialeconomics,byplacingtheroleofindustrialdistrictsatcentralstageinhisanalysis.

ThisJournalisproudtohavehosted,sincetheearly1980s,severalessaysinwhichBecattini’sdifferentwayofthinkingabouteconomicsemergeswithgreatlucidity(Becattini,1984,1985,1990;BecattiniandRullani,1993).Intheseseminalcontributions,hehasbroughttotheforefrontthegenerativecapacitiesofindividualsandoftheirsetsofrelationsinlocalsociety,asthedrivingforcesofthenewpost-fordistecologicalproductions.

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Thekeypointisthatthisvisionofproduction-whereindividualsandlocalsocietieshaveanactiverolethatmakeseachecologyunique-goesbeyondtheconventionaldualismofmarketsandhierarchies.Thatistheideathatindustrialorganizationcanbereducedtotwobasicforms:thecompetitivemarket,whereequilibriumpricesaresettoselecttheoptimalchoicesofmanyindependentoperators;andthehierarchyoflargeenterprises,which,withitsowncommand,governsandfinalizesthebehaviorofitsemployees.Inthetraditionalview,prevalentuntiltheseventies,tertiumnondatur:moderncapitalismisexpressedthroughamixofmarketandhierarchy,givingaresidualroletoallotherformsofproduction,consideredineffectiveandboundtobeovercome.

Instead,otherorganizationalpatternshaveproliferatedandtheircompetitivestrength,wellrootedinhistory,hasbecomeparticularlyapparentinthe1970s.InItaly,inparticular,thedemandforflexibility-inresponsetotheturbulenceofthemarketsandtotherigidityofthehierarchies-fueledthegrowthofpolycentricsystemsofwidespreadentrepreneurship,localizedinplaceswhichhadlongspecializedingivensectors(industrialdistricts).Tothemostcarefulobservers,thisevolution-dominatingtheeightiesandnineties-showsthatmarketandhierarchydonotexhaustthepossibleformsofmodernproduction,butathirdformispossible.Inparticular,inthecaseofItalianindustrialdistricts,thisthirdformreliesonthecultural,historical,andsolidaritybasedresourcesoflocalsocieties,whichplayakeyroleasproductiveforces,capableofusingmoderntechniques,andatthesametimemanagingcomplexsituations.Itisanorganizationalformthatbestexpressesitscompetitivepotentialinallcaseswhereitisnecessarytoelaborateflexible,intelligentandsharedsolutionstoproblemsthatarelargelyunforeseenandnoncodified(andoftenun-codifiable),i.e.problemsthatmarketpricesandprescriptiveprogramshavepoorabilitytohandle.

Aclearconceptualizationofsuchphenomenaemergesonlygraduallyinthetheoreticalreflectionofthoseyears.Initially,whatcapturestheattentionofscholarsistheoutsourcingprocessthatreversesapreviouslyobservedtrendoflargecorporationstointernalizeallfunctionsandproductionphases,inthelogicofmaximumverticalintegration,allowingthemaximumcontrolovertheproductioncycleasawhole.Outsourcingmeansthatthebigorganizationfocusesonaparticularcorebusinessonwhichitinveststomaintainitscompetitiveedge.Skills,servicesandinvestmentsaredecentralizedtoexternalparties,buildingastablecollaborationnetworkthatallowsthechaintogeneratevalueinanefficientandflexiblewayatthesametime.

Fromthisperspective,thethirdorganizationalformthataccompaniesthemarketandthehierarchyiscontractualnetworking,whichorganizesrelationshipsystemsbasedonagreements,alliancesandtrust-basedlinkagesthatarenecessarilymoreheterogeneousandpersonalizedthanthosecharacterizing"puremarket"transactions.Networkrelationsrelyonasetoftransactionswhosenatureneedstobeadaptedtothetaskstobehandled.Fixinganequilibriumprice(throughmarketexchanges)ordefiningaprogramdictatedbytheorganizationalcommand(asinahierarchycontext)maynotbeeffectivewhenitcomestotacklingproblemsthatarenotclearlydefinedexante,implythecombinationofdissimilarbutcomplementaryresources(Richardson,1972)andrequiremutualtrustbetweenthepartiesinvolved.Thenetworkbetweeninterconnectedoperatorsimpliestransactionsofadifferentnature.

Thetheoryoftransactioncosts-whichatthebeginningwasfocusedonthemarket/hierarchyalternative(Williamson,1975)-adoptedan"institutional"interpretivekey,whichconsideredmarket,hierarchyandnetworkingasdifferentandcomplementarywaysoforganizingtransactions(Williamson,1985).Theenterprisecanthenbeseenasanexusoftreaties(Aoki,GustafssonandWilliamson,eds.,1990),i.e.asasystemthatutilizesvariouscontractualformstoconnectthepartiesinvolvedinproductionbothwithintheenterprise(businessunitsandstakeholders),andinexternalrelations(suppliers,distributors,partnersandcompetitors).Thisorganizationalform-networking-isnotentirelynew:inordertodefineitscharacters,onecandrawinspirationfromthemodel,elaboratedinparticularbytheSwedishschoolofindustrial

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business,lookingatthecollaborativeformsbetweensuppliersandbuyersinallcaseswherearelationshipofmutualinterdependenceisestablished(HakanssonandJohanson,1991;HakanssonandSnehota,1989).

However,itisnoteworthythatnetworkingthroughwhichthedivisionoflaboroccurs,tendtoconcentrateinspecificplacesthatareable-morethanothers-toattractandself-generateactivitiesrelatedtoacertainsectororfunction.Thus,someotherlocalandnon-ubiquitousdriversareinaction–andhelporganisecontractualnetworkingonaterritorialbasis.Infact,empiricalobservationshowsthat,inthepost-Fordistnetwork,notallsitesarethesame:somearemoreintenseandinvolvemorenumerousrelationships,theycatalyzemorecapitalflows,talents,andcommodities.Thesemoreintenselinkagesreflecttheamountandqualityofknowledgeembeddedinthoseplaces,andtheircapacitytousespecializedworkandskills.Hence,thepost-Fordistcontractualnetworkingnodesarenotequallydistributedinthegeographicspaceofthenationalandglobaleconomy,whereasmorecomplexandintenserelationshipscanbeobservedinanumberoflocalizedclusters(Porter,1998).Thisisnotjusttheeffectofproximityrelationships,whichfavorlocationandco-locationdecisions.Thereisalotmorehere:attractivenessisindeedafunctionofthedistinctivequalityofthecontextinwhicheachpersonoreachenterpriselivesandworks.Aterritorialcontextrichincraftsmanshipandofhistoricaltradition,translatedintoahighentrepreneurialpropensity,playsacompletelydifferentrolefromstandardagglomerationeconomies.Thelatterarenormallygeneratedbytheconcentrationofdynamicconsumersonthedemandside,ofadvancedresearchatthefrontierinkeytechnologicalfields(suchascomputing,mechatronics,biotechnology),ortheavailabilityofamarketforspecializedlabourandproductioninputsonthesupplyside.Ontopoftheseimportantattractors,oneshouldemphasiseamorecomprehensiveandpowerfuldivisionoflaborbetweenterritoriesthatreliesonthedistributionofskills,functionsandprocessesinrelationtotheuniquequalityofthecontextwhereproductionandsociallifeoccurs.

InthecaseofItalianindustrialdistricts,localizedclustersareofasectoralnature,becausevendorsandcontractorsinthesamesectorfocusonafewsquaremilesofspace,thuscommunicatingandinteractingwithoutdifficultytohandlecomplexsituationsthatarelargelyunforeseeableinadvance.InJapan,geographicalclustersreflecttheconnectiveroleplayedbylargesystemintegratorsmobilizingnetworksofsmallormedium-scalesuppliers.Inthefieldofinformationtechnologyyesterday,andthewebeconomytoday,theplacesofexcellencearedictatedbytherecenthistoryofthemostsuccessfulinnovationsand"champions",whichgenerateknowledgeexternalitiesandatechnologicalenvironmentconducivetoexperimentationandinnovation.Similarconditionsapplyinthecaseoflogistics:airports,harbors,railandroadnodeswiththehighesttrafficcreateterritorialconvergencesbetweenusers,adgeneratenetworkexternalities.Inmanyurbancentersthathavestrongattractivenessinthefieldofcreativity,fashion,andartisticexpression,networkconsolidationreflectstheneedformanycompaniesinthesectorsconcernedtomaintaindirectcontactwithembeddedknowledgeinthedifferentterritoriesofexcellence(Florida,2005;Glaeser,2009).

ClustersmayalsoderivefromthegeographicdistributionofR&Dactivitiesinparticularfieldsandinspecificregionsorcities,basedoncognitivepre-existence(embeddedinplace)orR&Dinvestmentprogramsinparticularlyattractivetechnologies.MNEsdistributetheirR&Dinvestmentsaccordingtothepeculiaritiesofthecountrieswheretheyarepresent,focusingoncertainR&Dactivitiesinaspecificlocalcluster,totakefulladvantageofthedifferencesthatcharacterizethem.Thankstotheirbelongingtoatransnationalstructure,R&Dlabscanparticipatetoadivisionoflaborandareenabledtoshareusefulknowledgeflowingthroughcognitivepipelinesmanagedbythemultinationalthroughitsinternallines(CastellaniandZanfei,2006,Meyeretal.,2011,Cano-Kollmannetal.2016).

Thelocalnodesparticipatinginthisglobaldivisionoflabortendtobecharacterizedbyaspecific"atmosphere",intermsofbothculturalvaluesand"tacit"orcontextualknowledgeaccumulatedovertimeandmadeavailabletopeopleandcompaniesactiveinthearea(Becattini,1989and1991).

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Thethelocalcirculationofideasamongcompetentproducerspromotingcreativesolutionsintechnologiesandproducts,whichisakeydimensioncharacterizingtheMarshallianconceptof"atmosphere"1,isoftenreferredtoinmorerecentinternationalliteraturebytheterm"buzz"proposedbyStorperandVenables(2004).The‘localbuzz’tendstoleadtoanever-increasinggeographicalconcentrationofinnovationactivityinafewregions.However,itmaybebothunrealisticandundesirableforeconomicregionstorelyonlyon‘localbuzz’fordevelopingtheirknowledgebase,andsuccessfulclustersneedtocombineknowledgeinternalandexternaltothecluster.Tothisend,‘globalpipelines’needtobeestablishedinordertoallowexternalknowledgetoflowintotheclusters(Owen-SmithandPowell,2004;Bathelt,MalbergandMaskell,2004).Globalpipelinesrefertochannelsofcommunicationusedintheinteractionbetweenfirmsindifferentknowledge-producingcentreslocatedatadistancefromoneanother.Theycan‘pump’informationaboutmarketsandtechnologiesintothecluster,makingthe‘buzz’moredynamic,byprovidingaccesstoamorevariegatedsetofknowledgepoolsfromwhichtodraw.Whattheseauthorsemphasiseisexactlythelocalizednatureofinnovationsthataregeneratedinagivenplace,andaretransferred,appliedanddevelopedonaglobalscalethroughtrans-territorialnetworks.Theatmospherecharacterizingeachplacemaythusbeakeyassetforinnovationandcompetitiveness,totheextentthatitfacilitatesinteractionsandexchangesbetweenlocalactorsbearinguniquecompetencies,andprovidedthatitdoesnothindercross-bordertransmissionofknowledge.

2. Industrialdistrictsasexperimentsofcapitalismwithahumanface

GiacomoBecattini'stheoreticalworkreferstotheinnovativeexperienceofItalianindustrialdistricts,linkingittotheMarshallianmodel.Heelaboratedontheconceptof"atmosphere"characterizingthoseplacesbecauseoftheirhistory,cultureandinstitutionalbackground,whichinturnaffectthestructureofincentives,behaviorandlearningcapacitiesofactors.Geographicproximityisakeyresourcereducingrelationalcosts(viathecreationoftrust),favouringknowledgesharing,creatingacontextofinfrastructures,rules,andbehaviorsthatareparticularlysuitedtoagivensectorortypeofactivity.

Inthepre-2000sdistrict,theproductionchainsareessentiallylocatedwithinalimitedterritory.Unlikewhathappensinclustersattractingmultinationals-therelationshipwithactorsandinstitutionsbasedoutsidetheterritorialboundariesofthedistrictitselfiscircumscribedintermsofbothactivitiesandgeography.Externalrelationshipsarebasicallylimitedtoupstreamsourcingofsomeresources(rawmaterials,energy,basicknowledge)andtoafewdownstreamactivities(exportstodistantmarkets).However,evenwiththischaracterisation,districtsarealreadyseenasnexusesoftrans-territorialrelations,highlyconducivetoinnovationandincompetitionwithotheropennetworks.Fromthisperspective,Becattini’sreflectionwasquitealignedwith,andevenanticipated,thedebateonopeninnovationinthepost-Fordistera.

Althoughconnectedwithwithothertheorizingofnetworksandoftheirterritorialclustering,Becattini’sin-depthstudyofsometypicaldistricts(firstofallPrato)leadshimwellbeyondthetheoryofclustersasplaceswhereinproximityandthequalityoflocalcontextsdeterminefundamentaladvantagesintermsofcostorproductioncapacity.Inhisview,localclusteringofactivitiesisnothingmorethanthemostvisibleandmeasurablemanifestationofadeeperandmorepowerful"engine"thatbringslocalsocietytoworkandusesitsanthropologicalandhistoricalqualitiesinvaluecreation.Fromthisperspective,localsocietyisa"choral"subject(Becattini2015),andaverycloserelationshipexistsbetween“sensemaking”2and“value1TheotherkeydimensionofMarshalls’industrialathmosphereistheaccumulationofafieldofspecificcompetences,thatinrecentliteratureisreferredtoas“industrialcommons”(BuciuniandPisano,2015)2Aconnectionismadeherewiththeliteratureon“sense-makingcommunities”or“communitiesofsharedmeaning”,madeofinterconnectedindividualsandorganisationswhopursueconvergingobjectives,interestsandpassions,co-producenewgoodsandservicesthat“haveameaning”tothem(Weicketal.2005,Bechky2003).

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creation”.Inotherwords,industrialdistrictscreatetheconditionsnotonlyformutualtrust,butalsoforthechoiceofspecificwaysoflifeandforthesharingoflocalknowledge.Thisisnotmerelyananthropologicalvariantofclusterednetworking,butanotherwayofthinking.Throughthelensofindustrialdistricts,heoffersacomprehensivetheorising–andproposesautopia–ofhowtheeconomyshouldwork.UsingtheillustrativeexampleofPratoandotherdistricts,hehighlightsthemakingsofacapitalismwithahumanface,basedoncommunitiesandnotonlyonindividuals(Becattini1990and2004).

3. GiacomoBecattini:Anotherwayofthinkingabouttheeconomy

WhataretheelementsthatleadBecattini'sreflectionbeyondthemodelofnetworksclusteredintheterritories?

Hisinterpretivemodelgraduallybecomessharperandneaterwiththeemergenceofclearerdifferencesbetweentheevolutionofindustrialdistrictsandotherexpressionsofcapitalism(dominatedbybigbusinessesandbylargemultinationals).Thesedifferencesareapparentespeciallyinthepost-2000syears,whenindustrialdistrictsarenolongeranemergingrealitytobeexplored,butareratherestablishedsystemsabletosurvivethecompetitivechallengeoflargecompanies,byputtingtheresourcesoftheirlocalsocietiesintoplay.AsstatedbyAlbertoMagnaghiintheintroductiontoBecattini’slastbook(Becattini,2015):theinhabitantsofaplace–asobservedinindustrialdistricts-developasharedidentitybasedonacommonanthropologyandhistory.Andthiscollectiveidentitytransformsthemintoa"choral"subject,capableoffeelingandactinginformsofsynergisticcollaborationthattheexternalmarketcanrecognizeandrewardinglobalcompetition.

Byplacinglocalsocietyatcenterstage,theemphasismoves"fromthetheoryofvalueofcommoditiestothetheoryofpeople'shappiness".Itisindeedanotherwayofthinkingabouttheeconomy.Awaythatproposesaimsandmeanstopursuethem,otherthanthoseassumedbymainstreameconomics.

Asfarasaimsareconcerned,peoplewho"chorally"participateinthelocalsocietyprimarilypayattentiontotheextenttowhichthegenerationofvalue(andthereforeofmerchantablegoods)makessenseintermsoftheirsociallifeandoftheirindividualsensibility.Thissensemakingcannotbereducedtothemaximumprofitoftheclassicalhomooeconomus.Infact,commoditiesandservices,aswellastheentireproductionprocess,needtobeevaluatedinrelationtothe"choral"happinesstheyareassociatedwith.Moreover,akeyroleisplayedbythe"sharedintimacy"thatarisesfromthecommonhistoricalexperience,thelinkagescreatedandaccumulatedovertimewithotheractors,themoralobligationsassumedandtheempathythatmakessociallifesatisfactoryforindividuals.Peopleinfleshandbonearenotabstractandone-dimensionaleconomicagents.Theirwayofdoingbusinessisactuallyaprojectoflife,notaprogramofmerecapitalaccumulation.Thisappliestoalltheactorsinthedistrict,includinglocalentrepreneurs.

Asfarasmeansareconcerned,actorsinthedistrictarenotonlyefficientusersofresourcesthelocalcontextisendowedwith.Theyalsoparticipate-withtheirownsensibilityandvalues-inalocalecologycreatedoveryears,decadesand(insomecircumstances)centuriesofevolutionarylearningthathassedimentedcompetenciesandcreatedoccasionsofconvergenceofinterests,andfacilitatedtheexploitationofcomplementarities,evenbeyondtheawarenessofindividuals.Eachindividualactiveinthelocalcontextdoesnotmerelyusetheterritorialclusterasameansforitsownaims.Theyarepartofasystemthat-initshistoryofevolutionarylearning–hasaccumulatedphysicalstructures,culturalvalues,skills,viablespecializations,socialrulesandcodesofconductthataresuitableforlifeprojectscarriedoutbyindividualmembersofthelocalcommunity.Thisisthewaythatmakesthedistrictalivingsystemself-organizedasaresultofitsownhistory,inmuchdeeperandmorecomplexformsthanthosethatcanbedesignedbyitsindividualmembers.

Insuchaneconomy,everyplace(understoodasalocalsociety),pursuesitsownvocation,anddevelopsdistinctivequalitiesehnancingitscompetitivess,butalsohasthepotentialfortheself-realizationof

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meaning(happiness)forindividualsinvolved,overandabovethematerialwell-beingmeasuredbyGDP.Ifandwhenthisaccomplishmentofindividualaimsintermsofsense-makingandhappinessdoesnottakeplace,thisisbecause-accordingtoBecattini–this“natural”evolutionaryprocessishinderedbydeviantfactorstypicalofclassicalcapitalism:"theaccumulationofwealthandofdecisionmaking"inafewhands(Becattini,2015).

4. Today:industrialdistrictsintheongoingdigitalandglobalrevolution

Afterthecrisisof2008-14,itishardtosaywhatremainsofthisutopiaputforthbyBecattini.Since2000,asthesocalledfourthindustrialrevolutionhasbeenovertakingthescene,theindustrialdistricthasinfactceasedtobeareferencemodelforthefutureofcapitalismingeneral.Intheworldofdigitalandglobalrelationshipsoftheemergingparadigm,industrialdistrictsarefacedwithamoredifficultchallengethantheonesfacedbyotherproductionsystems,dominatedbylarge,highlyinternationalizedcompanies.Thebigcrisiscombinedwiththeeffectsofoveradecadeofwildglobalizationandofcompetitionbasedondigitalinnovationhasreducedthecompetitiveedgeoflocalsystemscenteredonsmallfirms,andhasshiftedthebalanceinfavourof"technologicalpoles"associatedwiththepresenceoflargecompaniesandlargeR&Dinvestments.MultinationalcorporationsandtechnologypolesarepresenttosomeextentalsoinItaly,whereBecattini’sdistrictsarerooted,buttoalesserextentthaninothercountriessuchastheUnitedStates,Germany,FranceorGreatBritain.

Districts have always shown a significant propensity to set up export networks, but have invested littleresourcestoreinforcetheirpresenceinforeignmarketsbymeansofdirectinvestments.Inthepast,districtshavereliedheavilyonforeignbuyers(attractedbytheflexiblesupplyofItaliandistricts),internationalfairsand on trust-based relationships between large foreign buyers and Italian suppliers located in differentdistricts.Today,thesechannelsarenolongerenoughtobecompetitiveinamarketthathasbecomemoredifferentiatedandwidespread.The"closed"chainsofclassicalindustrialdistrictsarenolongerabletooffercompetitiveproductsandservicesinglobalmarkets.Manydistrictshavebeenexperiencingtheemergenceofafewleadingfirmswhichhaveundertakenanewpathbasedonforeigndirectinvestmentandonagreaterinvolvementinglobalvaluechains.Localassetsdonotloseanyimportanceinthisprocessbuttheirfunctionchanges:territorialspecificityremainsasakeytovaluecreationinsofarasitcanbeasourceofcompetences,capacitiesanduseful relationshipsthatdiffer fromthoseofferedbyproducers located inotherPlaces. Inotherwords,‘localbuzz’and,moregenerally,localindustrialathmosphereneedtobecombinedwith‘globalpipelines’thatconnectgeographicalydispersedsourcesofknowledge.Thisisconfirmedbyevidenceshowingthat‘localbuzz’iscrucialforthedevelopmentofknowledgeinlocaleconomies,anditleadstopersistencein innovative activities and in levels of concentration of innovation in a handful of places in the world.However, ‘global pipelines’ are also becoming a crucial element for the successful development of localknowledge,makingthe‘buzz’moredynamic,andprovidingaccesstoamorevariegatedsetofknowledgepools from which to draw. This is evidenced by the increased role of cross-border co-invention which,interestingly,seemstocharacterisebothclustersinemergingeconomies,thatmayusesuch‘globalpipelines’tocatch-up,andbyclustersinadvancedeconomies,whichmayusethemtorevivetheirknowledgebasedandkeepupwithincreasedcompetitionforinnovation(Castellani,2017).

Buthow(andhowmuch)knowledgeistransferredintheseglobalpipelines?Howcantheobstaclesof‘notbeingthere’beovercome?(Gertler,2003,2008).Atthemostbasiclevel,pipelinescanbecreatedbyfirmsandorganisation,orthroughpersonalnetworks.LorenzenandMudambi(2013)examinetheroleofmigrantdiasporasinfacilitatingthecreationofsuchpipelines,withreferencetothecasesofthemovieandITclustersof Bollywood and Bangalore in India.Maskell, Bathelt,Malberg (2006) point out the role of temporaryclusters,emergingfromtheparticipationintradefairs,exhibition,conventionscongresses,andconferences.Gertler(2008)discusseshowcommunitiesofpractices,whicharedefinedasgroupsofworkersinformally

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boundtogetherbysharedexperience,expertise,andcommitmenttoajointenterprise,canbevehiclesforsupporting learning at a distance. These communities mediate in the joint production anddiffusion/transmission of knowledge within and between organizations. Furthermore, they allow somedegreeofrelationalproximity,whichfacilitatesknowledgeflowsacrossregionalandnationalboundaries.AsGertler (2008) notes, the formation of communities of practice, can be encouraged in largeMNEswith‘distributed’ knowledge bases and multiple sites of innovation, and supported by advanced means ofelectronicallymediatedcommunication, toovercome the frictionofgeographical separation. Indeed, theviewoftheMNEsasglobalorchestratorsofgeographicallydispersedknowledgehaslongbeenestablishedintheliterature.Bytappingintodiverseknowledgeclusters,andthankstotheirabilitytode-contextualisetacitknowledgeandtransferitwithintheMNEandacrossspace(Meyeretal.,2011;CastellaniandZanfei,2006,CantwellandSantangelo,1999),theycreateinstitutionalproximitythatallowsconnectionsbetweenknowledgesourcesandtosharetacitknowledgeacrosslocationsdespiteofgeographicaldistance(Almeidaetal.,2002;Cano-Kollmannetal.,2016;Harriganetal.,2016).Inotherwords,MNEsareprivilegedactorstoconnectclusters(IammarinoandMcCann,2013)andbuildglobalpipelinesbetweenthem.But,inordertoactasconduitsofknowledgebetweenclusters,MNEsneedtolocateR&Dindispersedlocations.Despitethefactthattheworldisincreasinglyinter-connected,nationalbordersanddistancestillmatters(Ghemawhat,2016). Thisbegs thequestionof ‘How far areMNEswilling togowith theirR&D inorder tobe close toknowledgecluster?’.Castellani,JimenezandZanfei(2013)addressthisquestion,andarguethatontheonehand,concentrationofknowledgeinfewgeographicallyconcentratedclustersreducesthesetofpossibleavailablelocationswherespecificbitsofknowledgecanbesourced.ThismayleavetheMNEnochoicebuttolocateR&Dinarelativelyremotelocation.Ontheotherhand,lowtransportcostsinthecaseofknowledgeinputsandoutputs,combinedwiththefactthatMNEshavedevelopedroutinesandorganizationalstructuresthatenablethemtocodify,processandtransfer(codifiedandtacit)knowledgeacrossnationalboundariesandwithintheirinternalnetworks(GuptaandGovindarajan,1991;CantwellandSantangelo,1999;Zanfei,2000;AmbosandAmbos,2009),makesitmorelikelythatMNEsset-upR&Dlabsinrelativelymoreremotelocations.Castellani(2017)showsthatthedistancebetweenthehomeandhostplace(thecityinhisanalysis)of foreign investment is the largestwhenMNEs locate R&D activities abroad: 22.4%higher the averagedistanceforalltypeofoffshoredactivities,and36%higherinthecaseofproductionrelatedinvestments.MorerobustevidencealongtheselinesisprovidedinCastellani,JimenezandZanfei(2013)whofindthatgeographicdistancehasalowernegativeimpactontheprobabilityofsettingupR&Dthanmanufacturingplants.Furthermore,onceaccountedformeasuresofinstitutionalproximity(suchas,belongingtothesametradeareaorsharingsimilarreligiousattitudesandlanguage),MNEsareequallylikelytoset-upR&Dlabsinnearbyorinmoreremotelocations.

Thispatternisdiscerniblealsoinindustrialdistricts,whichinmanycasesexperiencedatransnationalevolutionledbyforeignmultinationalsinvestingtotakeadvantageoflocalassetsandnetworkingabilities,withdistrictbasedsupplierspayinganactiveandimportantroleincertainfunctions.Apartiallyalternativeroadtothetransnationalevolutionofdistrictsistorelyonlocalmediumsizedfirms,capableofinvolvinglocalandinternationalsuppliers.Whicheverthepathfollowedinthisevolution,itappearstobeaslowandnon-linearprocessthatisturningindustrialdistrictsintonodesofglobalnetworks,whereineachplacecontributesaccordingtoitsdistinctivecharacter,andaccordingtoitscapacitytosatisfyspecificdemandsegments.

Thecompetitiveadvantageofmultinationalsrelativetodistrictfirmsthathadreacheditsapexoverthepastdecade,hasthusbeenslowlyshrinking,asdistrictsarebecomingthemselvesinvolvedinglobalvaluechains.However,Italianindustrialdistrictshavebeenevenmoreaffectedbytheseconddriveroftheongoingrevolution:digitization.Infact,theorganizationofknowledgeandrelationshipshasincreasinglybecomedigital,deeplychangingthecognitiveenvironmentinwhichcompaniesworkandwherepeoplelive.Ontheonehand,newwaysofproducingandusingknowledgehavebecomefeasible;ontheother

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hand,previousorganizationalmodeshavebecomeobsolete.Thedistrictsareatthecenterofthisspiralofcreativedestructionthathasaffectedtheorganizationalformsofmodernproduction.Atfirstglance,thepervasivediffusionofdigitaltechnologyhasadetrimentaleffectonindustrialdistrictsbecauseitchangesthefunctionandimportanceofgeographicproximity,theaxisoftheclassicaldistrictorganization.Withtheadventofdigitaltechnologies,infact,inmanyaspectsofproductionandofR&Dinparticular,theroleofdistanceisundermined(Castellani,JimenezandZanfei2013).Infact:

a)codifiedknowledgebecomesreproducibleandtransferable(overtimeandspace)atvirtuallynocost;

b)tacitknowledgewhosetransferismuchcostlier,canindeedbeproducedthroughmoreeffectivecommunicationandinteractionbetweenpersonsactiveindistantlocations.Thismakesitpossibletodistributeintelligenceonatrulyglobalscale,bothacrossdifferentstagesofGlobalValueChainsinthecaseofproductionnetworks,andacrossdifferentphasesofinnovativeactivitiesinthecaseofR&Dnetworks.

Whichevertypeofknowledgeisconsidered,amoreextensivedivisionofcognitivelaborispossibleonadigitalbasis,involvingdifferentspecialistsdependingonthespecificproblemtobesolved,andonthemodularityofproductsandtechnologies.Inaddition,itbecomesnecessaryforfirmsandworkersactivewithindistrictstomasternewtechnologiesinordertocodifyalltheknowledgethatiscodifiable,tofacilitateinteractioninglobalnetworks.Thisisofcourseanon-trivialprocessrequiringskillsandadeepunderstandingofpracticalandcontextualknowledgeandacostlyefforttogeneralisevaluableknowledgeinmoreabstractforms.

Digitizationandglobalizationarethereforedestabilizingforcesthathaveexertedtheircompetitivepressureonindustrialdistricts,especiallyinItaly,markingtheendofalongcycleofdevelopmentthatcanberoughlydatedfromtheearly1970sthoughtheearly2000s.

However,thisisonlypartofthestory:tounderstandthestrengthofthischangeinthecompetitiveenvironmentafter2000,wemustconsidertheintrinsicsynergybetweendigitizationandglobalization.Infact,asthedistancestobemanagedincrease,itbecomesmoreandmoreconvenientforglobalizingfirmstocodifytheknowledgetobeusedandthereforeitismoreandmoreadvantageousforthemtodigitizetheircognitiveprocesses.Bythesametoken,ifanenterprisebecomesdigital,itsstrategicandoperationalhorizonwillsoonbroaden,totakeadvantageofthezero-costreplicationandtransferofthecodifiedknowledgeavailable.Thus,digitalandglobaltransformationstendtooverlapandtoreinforceoneanother,significantlychangingthegeographyofinnovationcomparedtothepast(Castellani,JimenezandZanfei2013,Castellani,2017,Plechero,2012).

Hence,industrialdistrictsareforcedtoaccelerateandintensifytheireffortstointegratetheirlocalassetsintoglobalnetworks,thusbecoming“glo-cal”systemsopentointernationalknowledgesourcesandtoglobalproductionandcommercializationnetworks.Ofcoursetheyhavetoundertakethistransformationwithoutlosingthecultural,socialandtechnicalcharacteristicsthatmaketheircontributiontoglobalnetworksvaluableandunique.

Moreover,industrialdistrictsneedtoreconciletheuseofcomputercodesandformallanguagesneededtomovearoundinthedigitalworld,withtherolehistoricallyplayedbyinformalrelationshipsandknowledgeexchangesbasedonphysicalproximity.

Itisnowonderthatthetransitiontothenewdigital/globalparadigmhasbeenmoredifficultandslowerinItaly,whereindustrialdistrictshavealwaysbeenawidespreadreality,thaninothercountries,characterizedbylarger,morestructuredfirms.Inparticular,countrieswithawiderpresenceofmultinationals,capableofmovingonaglobalscaleandendowedwithmoreeducatedhumancapital,appeartobeinabetterpositiontomanagetheformallanguagesofcomputerscience,management,andcommunicationthatareneededtofacetheFourthIndustrialRevolution.

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5. ThreeGreatTransformationsUnderway

Despitetheirweaknessinthechangingglobalenvironment,industrialdistrictshaveturnedouttobereactivesystems,capableofchangingandhenceevolving.Lookingattheempiricaldata,thedistrictshaveinfactsufferedthecrisiswithsignificantrevenuelossesandprofitmargins,buttwentyyearsaftertheendoftheirgoldenage-theyarenot"dead"noroutoftheway,asmanyobservershadimagined.ThisisdemonstratedbytheannualsurveyonItalianindustrialdistrictsconductedbyIntesaSanPaolo(2016).Thissurvey,whichcomparesthesalesandprofitdynamicsofItaliandistrictandnon-districtbusinesses,showsthattheformeroutperformthelatter,bothintheircapacitytoreacttothecrisis,andintheirabilitytorecoverpre-crisisproductivityandproductionlevels.Itthusappearsthatitisnotsizeinitselfthatmakesadifference.Itisrathertheabilitytoberesilientandresponsivetothetransformationstobeundertaken.Infact,districtsarestillaliveandvitalbecause-ashappenstoalllivingsystems-havechangedinresponsetoenvironmentalchange.

Threewerethebasicdirectionsoftransformationundertaken:

a)ineachlocalsystem,medium-sizedenterprisesgrewuptooccupyakeyroleassystemintegratorsofcomplexsupplychains,andgotincreasinglyengagedinexportandforeigndirectinvestmenttoserveforeignmarkets.Mostoftheproductionphases,aswellasrawmaterials,aredecentralizedtoexternalsuppliers,sometimeslocalandsometimeslocatedelsewhere(inemergingortechnologicallyadvancedregions).Externalpurchasesincreasinglyinvolvesuppliersintheregional,nationalandinternationalcircuits(Rullani2014and2015).Toillustrate,MediobancaandUnioncameredatafrombalancesheetsrevealthat,onaverage,medium-sizeddistrictfirmsdirectlyproduceonlyone-fifthoftheirsalesvalue.Medium-sizeddistrictfirmsareincreasinglyabletoplayarolethatistypicaloftheleadingcompaniesinsupplychainrelationships;

b)the"socialcapital"thatallowedallactorsinthelocalsystemtogaineasyandfreeaccesstotheknowledge,capabilitiesandrelationshipspresentintheproximitycircuitisnolongersufficienttocompeteinthefourthindustrialrevolutionera.Cognitiveandrelationalskillspreviouslyavailablefreeofchargeinthedistrictarenotenough,andneedtobereinforcedbymeansofcostlyinvestmentstointegrateknowledge,networkingabilitiesandskillsderivingfrompastexperienceandtraditionswithnewassets,competenciesandrelationalabilities.Sometimes,itwillbenecessaryforfirmstoset-upallianceswithnewpartners(insideoroutsidethedistrict,andofteninternational).Ideas,logisticnetworks,suppliersandcustomerswillhybridizethetypicalbusinessmodelofthedistrict.Thesupply-chaininternaltothedistrictincreasinglyneedstobeintegratedwithexternalsupply-chains,thusenteringintoapreviouslyneglectedworldofpartners,competitors,institutions,workers,distributorsandconsumersintheglobalmarket.Thisevolutionrequirescompaniestosignificantlyenhancetheirfinancial,organizationalandstrategicabilities.Firms,workersandlocalinstitutionsmaysignificantlydifferwithinandacrossindustrialdistricts,intermsoftheirabilitytoundertaketheseeffortsRullani(2015);

c)whileinpre-2000years“sensecreation”wastheresultoflivingandproducinginthelocalcontext,todayitreliesoninnovativeideasandcompetencesthatareaccumulatedindifferentplaces,anditisthroughtheconnectionbetweenandamongtheseplacesthatsuchideascanbefullydevelopedandexploited,andnewreasonsofsatisfactionaregenerated.Industrialdistrictsaresubjecttoimportanttensionstochange,withthemostinnovativefirmswithinthemincreasinglyinvolvedinextensiveinteractionswithexternalsuppliersandconsumerstowhomtheinnovativeideasoftenmakesense.ThisisforinstancethecaseofproducersofwoodfurnituresinTrentino,whoapplyinnovativeideastotheareaofdomoticsandenvironmentalsustainablehousing.Thesefirmsareabletosatifynichesofconsumerssensitivetosuchissuesinmanyotherregionsandcountries,andtofindproducersinterestedinusingthesameprotocols,or

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UniversitiesandresearchcenterscarryingoutR&Delsewhereintheworld.AsimilarpathoftransformationseemstohavetakenplaceinthecaseofskibootmanufacturersintheMontebellunaarea,introducingnewmaterialsintheproductionofsportappliances;orofseveraldistrictsspecializedintextilesandgarment,inventingnewfiberswithapplicationsinclothingaswellasinotherfields.SeeBarzottoetal.(2016)forillustrativeevidenceontheseevolutionarypatterns.Inthetransitiontothedigitalandglobalworld,themostdynamicmedium-sizedcompanies,andthemostinnovativesmallcompanies,haveaverydifferentperceptionofwhatmakesthesenseoflivingandproducingasopposedtolessdynamicfirms.Infact,thelattercanbeexpectedtoadoptaninertialapproachandperceivechangeasasourceofanxietyanduncertainty,whereastheformerarelikelytotacklethenewcompetitiveconditionsmoreeasilyandtofindthemchallengingandstimulating.

Globalizationanddigitizationshouldnot,however,beconsideredonlyaspenalizingprocessesforsmallbusinessesinindustrialdistrictsinthenewcompetitivepost-2000context.Infact,thedevelopmentofefficientglobalnetworksinvolvingdynamicmedium-sizedandsmallfirmserodes,yearafteryear,thequasi-monopolyconditionofbigmultinationalsinmanymarkets.Thesewereinitiallytheonlycompaniesintheindustrializedworldabletooperateonfar-offmarkets,especiallyemergingcountries.Inthelongrun,globalnetworkscanhavepositiveeffectsontheevolutionofdistrictbasedsmallormedium-sizedenterprises,withtwofundamentaleffects:

-The“empowermenteffect”determinedbythepossibilityofgainingaccesstodigitalnetworks.Inotherwords,smallbusinessesandevenindividualsareenabledtodevelopricherandmoreeffectivecommunicationandinteractionwithdistantcounterparts,differentfromtheusualonesbasedonproximity.Thisnotonlyfacilitatestheexpansionofsalesmarketsforthosewhohaveachievedsomesuccessfulinnovation,butalsoallowsaccesstotheknowledgeavailableintheworld-widenetwork,makingiteasytodeployuseinnovations,whicharethekeycapacityofdistrictfirms.WhilebigR&Dinvestmentsremainlargelyassociatedtopublicinvestmentinstrategicresearchortothecommitmentoflarge-scaleenterprises,globalizationanddigitizationareincreasingtheimportanceofuseinnovationsthatenhancetheextractionofeconomicvaluefromsuchinvestments.Itisonthispartofvaluecreationprocessesthatindustrialdistrictscanrecoverapropulsiveroleaslongastheyareequippedtogainaccesstocodifiedknowledgeandscientific-technologicalknowledgeemerginginglobalcognitivenetworks.

-The“worldmakingeffect”ofdigital/globalnetworks.Wehererefertocapacityofsuchnetworkstoexponentiallyexpandtherangeofmeanings,desires,stimuliandvaluesthatfirmsandpeopleconnectedcangetintouchwith,enrichingtheirownworldmadeofconsolidatedhabitsandwaysoflife.Nowadaystherearemanycaseswheredigital/globalmarketingproposestopotentialusersnewstylesoflivingandworking.Newglobalcommercializationpracticesareaimedatcreating,firstinthecollectiveimaginationandthenineverydaypractice,newlivingandworkingenvironmentsotherthanthoseinheritedfromthepast.Creatingneworpersonalizedlifeandworkenvironments(inresponsetoindividualuserneeds)isoneofthemostimportantsourcesofvalueaddedindigitalandglobalnetworks.Fromthispointofview,industrialdistrictshavelongdevelopedvaluableskills,brandsandcustomizedsolutionsinmanyemotionallyengagingareas(fashion,nutrition,lifestyles,fun,smarttourism,reliablemachinesupply,aswellascomplexservices).Theynowhavetheopportunitytoexploittheirqualityandreputationbyofferingtheir"world"ideasinthedigitalandglobalenvironmentinvolvingmillionsofpotentialenthusiasts,propagatorsandbuyersintheworldmarket.

6. Becattini’sUtopiaintheNewWorldofDigitalandGlobalRevolution

Districtsarealiveandvitalnowadays,albeitfacingseriousdifficultiesintheiradjustmenttothechangingenvironment.However,thereisquiteagapbetweentoday’sdistrictsandtheclassicalmodelinherited

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fromhistoryandtheorisedbyBecattini.Thisisnotonlyamatterofdiminishingdistancebarriers,implyingthatlocalsystemshavelostasignificantpartoftheproximity-baseddifferentialbenefitsandarelessprotectedfromcompetitors'externalincursions.Moreimportantly,theirevolutionbringsoutakindof"newdistrict"thatdramaticallydiffersfromtheclassicmodel,exhibitingadegreeofinvolvementinglobalnetworksandoffunctionalspecializationthatarenottoofarawayfromtheonescharacterizingmultinationalcorporations.OnemaythuswonderwhatremainsofBecattini’sutopiainthenewcontext.Canonestillforeseeaglobalworldpopulatedwithlocalsocietiesabletoproducevaluebyfollowingtheirowninspirationsandchorallyparticipatinginavirtuousdivisionoflabor,withoutthedistortionsintroducedbythethemonopolypoweroflargemultinationals?TheansweristhattheinterpretivevalueofGiacomoBecattini’stheorizingremainstotheextentthatonemovesawayfromtheconsiderationoftheclassicaldistrictmodelandadoptshismoregeneralwayofthinkingabouttheeconomy,whichisexemplifiedby,butnotlimitedto,thehistoricalcircumstanceofItalianindustrialdistrictsinthesecondhalfoftheXXcentury.Hisviewmaywellapplytoavarietyofcircumstances,notonlytoindustrialdistricts,anditisflexibleenoughtoencompasseconomicchangeunderdifferentenvironmentalconditions.

Indeed,industrialdistrictsarechanginginawaythatisbyandlargeconvergingwiththeevolutionofknowledgeintensive,geographicallyspreadandextensivelynetworkedtransnationalcorporations.Muchlikemultinationals,themostdynamicindustrialdistrictsareundertakingthreedifferentlevelsofaction(Rullani2015):

1)Thecreationofamulti-localizedsystemofcreativeclusters,locatedinopeninnovationenvironments,capabletoattracttalentandtoexperienceemerginginnovationideas.TheseclusterstendtobeclosetowhereR&Dcentersare,butalsotothemostattractiveurbancenters,wheredifferentoperatorsconvergetogetintouchwith,andgetinvolvedin,circuitsofexcellence.Duetotheirlocalconcentrationofexpertiseandexperienceingivensectors,industrialdistrictscanfavourtheformationof,andfeedthedevelopmentof,suchclustersenhancingtheaccumulationandexploitationofvaluableknowledgeandskills.Asarguedearlier,however,themakingofcreativeclusters(andofeffectiveconnectionswithotherclusters)requiresstronginvestmentsandstrongrisks.Thisforcesdistrictfirmstodevelopalliancesbothwithinandoutsidethedistrictwellbeyondthesetofsupplyrelationshipsinheritedfromthepast;

2)Theconnectiontoaglobalcognitivenetworkthatmanagescodifiedknowledgerelevanttothechoseninnovationfield.Suchanetworkcangiveaccesstowhatisusefulandinterestingintheworldofscienceandtechnologyandprovidesthemeanstodiffuserelevantinformationonproductcharacteristicsandusageconditionstowardscustomers,distributors,end-consumersinworldmarketsWorldwide.Theglobalcognitivenetworkisveryactiveinmultinationalsandwithinlargemetropolitancenters,wherethelevelofeducationofentrepreneursandworkersishighandcontactsthatfacilitateexchangeorcognitivesharingarefrequent.Inthecaseofindustrialdistricts,thisnetworkisstillembryonic,bothbecauseoftheirdecentralizedlocalization(farfrommajorR&Dcentersandmetropolitanknowledge),andduetotherelativelylowlevelofformaleducationoflocalworkersandentrepreneurswholargelyderivetheircompetencesfrompracticalexperience.Eveninthisrespect,thesituationisevolvingandweaknessescanbeovercome,butitmightbeimportanttospeedupthisprocess,bysettingupalliancesamonglargenationalorinternationalcompanies,researchcenters,universities,inordertogainaccesstorelevantexpertise;

3)Thesetupofamultilocalizedsupplychainthatdeploysthemanufacturingandmarketingphasesinmultiplelocationsaroundtheworld,dependingonthespecificcostsandcapabilitiesofthedifferentlocations.Logisticsflowsofgoodsandinformationalsoneedtobeorganizedtospeedupproductionoperationsthroughoutthesupplychain.Fromthisperspective,districtsarestillweakascomparedtotransnationalchainsorganizedbylargemultinationalsthathavebeenoperatinginseveralcountriesaroundtheworldfordecades.Indeed,smallsizedistrictbasedfirmscanhardlyaffordtoestablishproduction

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plantsaswellascommercializationfacilitiesabroad.Thisisanotherfieldwherealliances,withinthedistrictorwithexternalsubjects,areneededtohelpsetupsuchsupplychainsandtospeedlearningprocesses.Therearealsomanycasesofdistrictcompaniesthatactivelyparticipate-asspecializedsuppliers-inmultilocalizedvaluechainsthatarerunbylargemultinationalcorporationsorlocalmedium-sizedbusinesses.Inthesecases,itisveryimportantthatthesupplierbringsindistinctivequalityandcompetencies,ascompetitiveassetstobespentinthenetwork.

WhataretheelementsofBecattini’sutopiathatarestillpresentandactiveinthenewdigitalizedglobalcontext?ThekeyconceptsemphasizedbyBecattini-sensesharing,searchofhappiness,territorialecologiesbasedoncollectivelearningprocesses–stillplayanimportantroleinacompetitivescenariocharacterizedbycreativeclusters,cognitivenetworksandglobalsupplychains.

Theroleofsensesharingthatdistrictsinheritedfromtheirownhistoryneedstobereconsideredhowever.Ontheonehand,effortsmustbemadetogovernconflictsoriginatingfromthefragmentationofthepreviousdistrictecology.Ontheotherhand,newformsofsensesharingmustbeconstructed.Thechoralityandintimacythat,asBecattinisuggested,characterizedlocalcommunities,canhardlybereplicatedassuchintheglobalcontext,whileglobalsensemakingcommunitiesemerge.Trans-territorialsocialrelationshipsco-existwithlocalcommunities.Tomakeawell-knownexample,SlowFood3isillustrativeofasensecommunitythatcrossestheterritoriesandconnectsallthosewhoadheretoacertainnutritionidea(SlowinsteadofFast,sensitivetolocalsupply,preferencefornon-standardizedfood).However,communitiesofthiskindareemerginginallfields,byputtingtogether-throughthedigitalnetwork-peopleandbusinessesthatassignasharedsensetocertainlifestyles,fun,learningorwork.

TheothercrucialelementofBecattini’smodeliscollaborativelearning,asakeydriveroftheevolutionoflocaleconomies.Today’sdigitalandglobalsupplychains(creativeclusters,cognitivenetwork,operationalchain)relyonsuchcollaborativelearning,butthisisnotamerereplicationoftraditionalcollaborativepatternsthatwereinheritedfromlocalhistory.Infact,thenumberandvarietyofactualandpotentialpartnersdramaticallyincreasesascomparedtothetraditionaldistrictmodel.Thisimpliesalsoadramaticincreaseinthenumberandvarietyofinteractions,relationships,andexperimentalconnectionsthroughwhichevolutionaryprocessesoccur.Suchlearningprocessesmustbegovernedthroughtheconvergenceandcross-fertilisationbetweendifferentcultural,technologicalandorganizationallanguages,practices,androutines.Thisisthewaythroughwhichelementsofchoralityandintimacyoftheolddistrictsareintroducedinthenewdistrictmodel.Fromthisperspective,thedigitalandglobalrevolutionappearstobe,especiallyinthecaseofindustrialdistricts,aculturalrevolutionbecausetheyhavetointernalizediversityinapre-existingsharedsenseframework.Localpeoplecanbethepivotofthiscreationofsenseiftheybringintocollaborativenetworkstheirowndistinctiveidentityandcompetences.Thisisapossibleevolutionarypattern,quiteconsistentwithBecattini’sideaoflocalcontextsasapowerfulengineofgrowth,potentiallyleadingindustrialdistrictstoincreasetheirvaluecreationcapacities.

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