Endogenous Rerouting and Longevity in Systemic Organisations of Production

Recent debate in regional studies has focused on place-based approaches to local development that are associated more and more to the investigation of systemic features able to trigger sustainable innovation paths and resilience against shocks and challenges. This chapter draws on the interpretative arguments related to the endogenous processes of innovation and systemic mechanisms of longevity and long-term competitiveness in industrial districts and local production systems. A critical review of the recent contributions on this topic allows a novel understanding of how—under certain conditions—local production systems can benefit from endogenous rerouting, especially in face of the recent technological changes strongly impacting on traditional industrial organisations. The activation of latent mechanisms of transition may recombine embedded competences and useful knowledge to deliver path-breaking economic solutions that create new competitive advantages and allow longevity to local production systems.