ABSTRACT
While several of the studies in this volume have focussed on the development of industrial districts and the underlying business networks over time, they too largely ignore the issue of the decline of an industrial district after its development has reached saturation. Given the f>Otential problems
arising from a monolithic industrial structure, Wilson and Singleton argue, following Peter Swann's work, that when an industrial district reaches the saturation stage, the regional business networks should seek to diversify the industrial base of the district in order to assure the continued economic stability of the regional economy. At the same time, any attempts to diversify the industrial structure may be hampered by the fact that other localities often offer a more favourable environment for new clusters to emerge around new technology. Moreover, the question remains regarding the extent to which local business networks can successfully attract new firms to an existing industrial district, particularly as the emergence of new enterprises will potentially undermine the local labour market and redirect finance away from established producers. For example, the Manchester industrial district entered into its saturation phase during the inter-War period and continued to decline until the late 1970s. It was consequently a prime candidate for diversification of its industrial structure. Wilson and Singleton note in their chapter that despite the considerable efforts of certain local business leaders, the attempts to diversify the industrial base during the inter-War period failed to rejuvenate the regional economy. While a number of electrical engineering and aircraft firms managed to gain a foothold in the Manchester industrial district, their establishment did not lead to the formation of new industrial clusters.3
