ABSTRACT
This chapter describes different approaches to the “Marshallian” industrial district, which G. Garofoli defines as “classical” and discusses the systemic properties of the industrial district. It examines the industrial district as a system in context and explores its dynamics as a cognitive system and how they relate to different competitive environments. The chapter deals with the new evolutionary path of local production systems. “The Marshallian industrial district is a localised ‘thickening’ of inter industrial relationships which is reasonably stable over time”. The chapter examines the features of local production systems, or industrial districts and assesses their appropriateness to the changing environment, even if in both Italy and Europe there are many different kinds of systems. The internal dynamics of knowledge involve all the technological aspects of the production phases and a widespread ability to make adjustments in order to obtain the desired mix of products.
