ABSTRACT
Statistics from the industrial censuses show that from 1971 to 1991 industrial districts have been a resounding success. In twenty years their share of the total manufacturing employment in Italy has risen from 32 to 42 per cent. This success is attributable to the specific ability of the districts to harmoniously resolve conflict and cooperation both among firms, and within the firm (Brusco 1992; Brusco and Fiorani 1995). The aim of this essay is to study the way in which these dilemmas are dealt with in order to create an efficient system. The basic idea is that specific rules that allow parties to express themselves generate behavioural patterns that, instead of producing destructive effects, make the system more competitive.
