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Building Industrial Districts: Do Subsidies Help? Evidence from Postwar Italy

Published online by Cambridge University Press:  20 April 2020

Abstract

The “historical alternatives” approach calls for research into the role of national institutions and public policies in the resilience or decline of industrial districts. Policies in support of small and medium-sized enterprises (SMEs) were launched in various Western economies in the second half of the twentieth century. This article focuses on the paradigmatic Italian case and investigates the importance of government subsidies for SMEs on firms located in a southern and a northeastern district, between 1971 and 1991. This discussion deepens our understanding of the role of national policies in the reemergence of industrial districts in the decades of the Second Industrial Divide. It also indicates the importance of firms’ utilization of subsidies and their ecosystem as complementary to the policy's effectiveness.

Type
Research Article
Copyright
Copyright © The President and Fellows of Harvard College 2020

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Footnotes

I thank Bernardo Batiz-Lazo, Ove Bjarnar, Mark Casson, the late Francesca Carnevali, Evelyn Fenton, the late Chris Kobrak, Simon Niziol, Giorgio Riello, Alberto Rinaldi, Peter Scott, and Michelangelo Vasta for their comments; Alberto Baffigi, Giovanni Iuzzolini, Maria Lucia Stefani, and staff of the Biblioteca Paolo Baffi, Banca d'Italia for their help with the research. This article benefited greatly from discussions with Brian A'Hearn, Paolo Di Martino, Oscar Calvo-Gonzalez, Giuliano Maielli, and Max-Stephan Schulze. Any errors are my own.

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