An Evolutionary Analysis of Industrial Districts: The Changing Multiplicity of Production Know-How Nuclei

This paper deals with the evolution of place-based division of labour, considering in particular the dynamics of differentiated pools of knowledge that can be embed- ded in local production systems such as industrial districts. Drawing on conceptual framework of Marshallian industrial districts, the paper develops a model that links knowledge dynamics to possible tendencies towards either industrial progress, lock- in, transition or decline of such systems. The model is complemented by a related new statistical method that allows us to analyse the evolution of the multiplicity of production know-how nuclei inside industrial districts.The methodology is applied to two cases: the ceramics district of Stoke-on-Trent (UK) and the textile district of Prato (ITA) over the period 2005–2013.