DCU Business School

In this survey, we examine the operations of innovation processes within industrial districts by exploring the ways in which differentiation, specialization, and integration affect the generation, diffusion, and use of new knowledge in such districts. We begin with an analysis of the importance of the division of labour and then investigate the effects of social embeddedness on innovation. We also consider the effect of forms of organization within industrial districts at various stages of product and process life, and we examine the negative aspects of embeddedness for innovation. We conclude with a discussion of the possible consequences of new information and communications technologies on innovation in industrial districts. 1 The paper is a draft chapter for Giacomo Becattini, Marco Bellandi, and Lisa De Propris, eds., Handbook of Industrial Districts. Cheltenham: Edward Elgar, in preparation. We thankfully acknowledge suggestions made by the editors and by Arnaldo Camuffo and Paola Cillo. Any errors, of course, remain our responsibility.