Fiorenza Belussi, Giorgio Gottardi, and Enzo Rullani This volume collects some papers presented at the Vicenza conference "The Future of Districts", held in June 1999, organised by the Department of Technology and Management of Industrial Systems of the Faculty of Engineering of Padua University, with the collaboration of several engineers, industrial economists, and experts in the issue of technology management. This was the starting point of a long-lasting and painful colIective discussion, the results of which are documented here, during many meetings of this "itinerant" group, including the workshop in Padua, organised by Professor Luciano Pilotti and held in May 2001, "Systems, governance & knowledge within firm networks" at the Department of Economics of the University of Padua, and the recent international research seminar, held in May 2002, in Rome at the Tagliacarne Institute, within the EU sponsored project "Industrial districts' re location processes: identifying policies of EU enlargement West-East ID". The reason we decided to organise this book was not only to underline the importance of the industrial district (ID) model as a tool of propulsive local growth in a country like Italy. On the contrary, the idea that moved us was the theoretical dissatisfaction with the way in which the phenomenon of local development and industrial clustering of specific industries was treated in the international approach of the various disciplines.

This book outlines the historical framework and the main concepts of the literature on industrial districts. It illustrates a new approach to the study of industrial development, based on well-known industrial districts analysis. Academics, politicians and students interested in local development and also industrial development will find much to learn in Industrial Districts, as will industrial geographers and historians of industry and of economic thought.

Italian industrial districts (IDs) recently attracted international attention because their performance during the last few decades contradicted the alleged weakness of industrial structures based on SMEs in "traditional" sectors. The book analyses some developments taking place in Italian IDs and local systems of production that can represent a new stage of evolution for the backbone of the Italian economy. Based on the extensive use of original databases three main trajectories of change in IDs are presented. The first trajectory is the increasing role of "groups" of manufacturing SMEs arising from mergers and acquisitions as well as spin-off growth processes at the "family firms" level. The second one is the consolidation of innovation capabilities in IDs. And the third one is the internationalisation process of Italian IDs through both trade and foreign direct investment. The essays suggest that Italian IDs are again evolving by coherent adaptations which will have, however, uncertain outcomes.

Pulished in 2000, a selection of contributions presented in 1998 at the conference of Udine entitled, "The Development of Industrial Districts in Italy". The theoretical aim of the book is to explain the dynamic mechanism of the growth of Italian "industrial districts" shifting attention from "Marshallian industrial districts", where focus is not just on the decentralization of production among small-batch firms. Determinant factors explaining growth seem related to the ways in which firms explore the markets, learn tacit knowledge, network with subcontractors and make incremental innovations. In substance, the work offers a cognitive approach to the issue of industrial districts.