Industrial district concept was initially used by

Alfred Marshall Alfred Marshall (26 July 1842 – 13 July 1924) was an English economist, and was one of the most influential economists of his time. His book '' Principles of Economics'' (1890) was the dominant economic textbook in England for many years. I ...

to describe some aspects of the industrial organisation of nations. Industrial district (ID) is a place where workers and firms, specialised in a main industry and auxiliary industries, live and work. At the end of the 1990s the industrial districts in developed or developing countries had gained a recognised attention in international debates on

industrialisation Industrialisation ( alternatively spelled industrialization) is the period of social and economic change that transforms a human group from an agrarian society into an industrial society. This involves an extensive re-organisation of an econo ...

and policies of regional development.

History of the term

The term was used the first time by

in ''The Principles of Economics'' (1890, 1922). and in "Industry and Trade". Marshall talks of a.... ''"thickly peopled industrial district"''. The term was also used in political struggle. The 1917 handbook of the

Industrial Workers of the World The Industrial Workers of the World (IWW), members of which are commonly termed "Wobblies", is an international labor union that was founded in Chicago in 1905. The origin of the nickname "Wobblies" is uncertain. IWW ideology combines general ...

states:- : "In order that every given industrial district shall have complete industrial solidarity among the workers in all industries as well as among the workers of each an INDUSTRIAL DISTRICT COUNCIL is formed ..." The term also appears in English literature. For instance, in a short story of 1920 by

D. H. Lawrence David Herbert Lawrence (11 September 1885 – 2 March 1930) was an English writer, novelist, poet and essayist. His works reflect on modernity, industrialization, sexuality, emotional health, vitality, spontaneity and instinct. His best-k ...

, ''You Touched Me'' (aka 'Hadrian'):- : "Matilda and Emmie were already old maids. In a thorough industrial district, it is not easy for the girls who have expectations above the common to find husbands. The ugly industrial town was full of men, young men who were ready to marry. But they were all colliers or pottery-hands, mere workmen." The strong specialisation of the workers and an appropriate support of public goods and institutions are supported by an "Industrial Atmosphere" related to a locally developing

division of labour The division of labour is the separation of the tasks in any economic system or organisation so that participants may specialise (specialisation). Individuals, organizations, and nations are endowed with, or acquire specialised capabilities, an ...

. Competences and knowledge are shared in informal way with processes of learning by doing and learning by using, and this promotes innovation over time. Local firms, families and civic organisations are connected by way of both market mechanisms and non-market mechanisms, like trust within bilateral or team exchanges, and collective action supporting the availability of local industrial, social and environmental infrastructure. Also, the notion that firms located in geographical proximity benefit from agglomeration effects in having a common or collective infrastructure is frequently mentioned as one of the main bases in the industrial district literature.

Recent evolution of the use of the term

Within the study of

economics Economics () is the social science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics anal ...

, the term has evolved. Giacomo Becattini rediscovered the concept to describe the Italian industrial configuration of the middle of the 20th century. Since the 1980s, the dynamic industrial development in NEC (North, East and Centre) of

Italy Italy ( it, Italia ), officially the Italian Republic, ) or the Republic of Italy, is a country in Southern Europe. It is located in the middle of the Mediterranean Sea, and its territory largely coincides with the homonymous geographical ...

, where after the

Second World War World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposi ...

geographical concentration of specialised

small and medium-sized enterprises Small and medium-sized enterprises (SMEs) or small and medium-sized businesses (SMBs) are businesses whose personnel and revenue numbers fall below certain limits. The abbreviation "SME" is used by international organizations such as the World Bank ...

(SME) raised up, led to an increasing attention to the Marshall' seminal works. A growing literature with an accompanying cloud of definitions of what is meant as an industrial district characterised the international dabate, e.g.

Cluster may refer to: Science and technology Astronomy * Cluster (spacecraft), constellation of four European Space Agency spacecraft * Asteroid cluster, a small asteroid family * Cluster II (spacecraft), a European Space Agency mission to study th ...

. Industrial districts in Italy have a coherent location and a narrow specialisation profile, e.g.

Prato Prato ( , ) is a city and ''comune'' in Tuscany, Italy, the capital of the Province of Prato. The city lies in the north east of Tuscany, at the foot of Monte Retaia, elevation , the last peak in the Calvana chain. With more than 200,000 ...

woollen Woolen (American English) or woollen (Commonwealth English) is a type of yarn made from carded wool. Woolen yarn is soft, light, stretchy, and full of air. It is thus a good insulator, and makes a good knitting yarn. Woolen yarn is in contrast t ...

fabric, Sassuolo in

ceramic A ceramic is any of the various hard, brittle, heat-resistant and corrosion-resistant materials made by shaping and then firing an inorganic, nonmetallic material, such as clay, at a high temperature. Common examples are earthenware, porcelain, ...

tiles or Brenta in ladies'

footwear Footwear refers to garments worn on the feet, which typically serves the purpose of protection against adversities of the environment such as wear from ground textures and temperature. Footwear in the manner of shoes therefore primarily serves ...

. The success of SME-based Italian districts in the last century and the alternate fortunes of the current ones led to investigate more thoroughly some related aspects. The general characteristics of the ID are consistent with gradual change supported by processes of innovation from below, or decentralized industrial creativity. However, the

globalisation Globalization, or globalisation (Commonwealth English; see spelling differences), is the process of interaction and integration among people, companies, and governments worldwide. The term ''globalization'' first appeared in the early 20t ...

processes asked non-gradual changes to the historical IDs and technical and organisational difficulties could hit them. In the Industry 4.0 era, the specialised capabilities of these areas seem to have the possibility to encourage the emergence of the New Artisans, Maker in the context of adapted models like the "ID mark 3.0".Bellandi, M., & De Propris, L. (2015). Three generations of industrial districts. Investigaciones Regionales, (32), 75.

References

{{DEFAULTSORT:Industrial District Secondary sector of the economy Industrial

History of the term

Recent evolution of the use of the term

See also

References