Firms, Governance, and Development in Industrial Districts

Firms, governance and development in industrial districts. Regional Studies. This paper explores the link between local governance structures and the ability of local firms to influence the strategic direction (and future development) of their industrial district. In doing so, it utilizes unique survey data from two British industrial districts to examine, first, the extent to which local firms shape local industrial development strategies and, second, the institutional conduits through which their influence is exercised. The empirical results suggest a role for (local) business associations, the building of reciprocal networks among firms, social capital and more heterarchical governance structures to enhance firm engagement in local initiatives and industrial development.