ABSTRACT
This chapter addresses the apparent paradox of the historical persistence of decentralised economic organisation in Saxony, marked by the concentration of large numbers of small to medium-sized and highly specialised firms, when the region was simultaneously at the forefront of processes of globalisation. The Leipzig fur capital emerged during the long nineteenth century as an industrial district and it was one of the most open sectors in Saxony. The chapter explains the research in order to remedy the lack of understanding of how regional business systems interact with the outside world. It argues that historical research has not yet fully taken into account the position of industrial districts within the global economy since industrial districts have usually been discussed within the debate about the history of industrialisation. The chapter adheres to the view that markets are, just like industrial districts, social constructions. It stresses the transnational dimension of local business practices and collective action on the macro level.
