ABSTRACT
Public policies that affect the ceramics industry and the small towns that depend on it are formulated and implemented by local, regional, and state government and, more recently, influenced by standards and funding opportunities of the European community. Two towns southwest of Modena— Sassuolo, population approximately 20,000, and Fiorano, population about 15,000—are the twin peaks of the world's most important ceramics sector. Approaching the town of Sassuolo by car, randomly spaced clusters of homes, vineyards, and farms suddenly give way to rows of tightly spaced factories. Consolidation and modernization in the agricultural sector are reducing the need for employment on, and opportunities for, family farms. Although local development in Italy and Denmark is driven by the competitive advantage of firms, the public sector plays an active role. Service centers in Italy and technical institutions in Denmark provide an array of services to help firms improve their product and process quality, develop new products and processes, and lower costs.
