ABSTRACT
This chapter presents an overview of changes in the textile and clothing industry (T-C) in Italy. The Italian T-C industry is perhaps unique since Italy has an acquired advantage in terms of past experience, reputation and capability of knowledge mobilization in practically all the distinct production phases and throughout the horizontal and vertical co-ordination of the entire sector. The Italian T-C industry labour force in the 1990s represents an important occupational group within the national labour market, consisting of about 700,000 employees. In cutting, innovations have completely automated the process but they require a high volume production and huge investments. In comparison with other countries, technological innovation has been pervasive, pushed by a high level of investment in replacement machinery. Small firms simultaneously represent a weakness of the Italian industry. In this case, size limits necessary investments that are needed in creating brand name familiarity.
