Skip to main content
Log in

Flexible specialisation, the new competition and industrial districts

  • Published:
Small Business Economics Aims and scope Submit manuscript

Abstract

Flexible specialisation, the new competition and industrial districts are concepts reviewed in this article to determine whether they can provide an alternative for the description of the industrial sector as a system of mass production. The concepts mentioned are discussed and criticized in this article. All three concepts stress the importance of a certain division of labour, of interfirm relations, of cooperation (versus competition), of technological development and innovation diffusion, of flexibility, the role of small enterprises and a local value system. However, a number of differences between the concepts are also highlighted, as well as the problems to use them in empirical research. It is concluded that the three terms are complementary and could be used in combination. The ‘flexible competitive districts’ would provide an alternative type of industrial organization, somewhere between the large scale integrated enterprise and the atomized self-contained individual firm. The challenge lies in turning the positive theory into a normative one. How can industrial development in Eastern Europe and Third world countries be turned into the development of flexible competitive district, which contribute significantly to the development of these countries and allow for an important role for micro, small and medium enterprises? It is argued that this can be done in the framework of urban and regional development policies, but this requires a different role for the government and the provision of an adequate infrastructure.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Alcorta, L., 1992,The impact of New Technologies on Scale in Manufacturing Industry, Maastricht: UNU/INTECH.

    Google Scholar 

  • Amin, A., 1992, ‘The Potential for Turning Informal Economies into Marshallian Industrial Districts’, Geneva: UNCTAD Conference paper.

  • Bain, J. S., 1956,Barriers to New Competition, Their Character and Consequences in Manufacturing Industries, Cambridge: Harvard University Press.

    Google Scholar 

  • Best, M. H., 1990,The New Competition, Cambridge: Harvard University Press.

    Google Scholar 

  • Chandler, A. D., 1977,The Visible Hand, Cambridge: Harvard University Press.

    Google Scholar 

  • Carlsson, B., 1989, ‘The Evolution of Manufacturing Technology and its Impact on Industrial Structure’,Small Business Economics 1(1), 21–38.

    Google Scholar 

  • Carlsson, B., D. Audretsch and Z. Acs, 1994, ‘Flexible Technology and Plant Size: US Manufacturing and Metalworking Industries’,International Journal of Industrial Organization 12(2).

  • Dijk, M. P. van, 1992a, ‘How Relevant is Flexible Specialisation in Burkina Faso's Informal Sector and the Formal Manufacturing Sector?’, in J. Rasmussen (ed), Flexible Specialisation: A New View on Small Industry,IDS Bulletin 23(3), 45–51.

    Google Scholar 

  • Dijk, M.P. van, 1992b, ‘The Interrelations between Industrial, Districts and Technological Capabilities Development’, Geneva: UNCTAD Conference paper.

  • Dijk, M.P. van, 1992c, ‘Planning Industrial Development in Baluchistan’, Quetta: Planning and Development Department Report.

  • Dijk, M.P. van and G. Asselbergs, 1992, ‘Vertical Adjustment in the Structure of European Automobile Production’, Rotterdam: Growth Dynamics University Institute Discussion Paper.

  • Donckels, R. and C. Bert, 1986, ‘New Firms in the Local Economy: the Case of Belgium’, in D. Keeble and E. Wever (eds.),New Firms in Regional Development in Europe, London: Croom Helms.

    Google Scholar 

  • Ernste, H., 1992, ‘Flexible Specialisation and Regional Policy’, Nijmegen: Workshop Autonomy and Independent Work.

    Google Scholar 

  • Fumagalli, A. and G. Mussati, 1992, ‘The Evolution of Flexible Specialisation Systems, Some Italian Experiences’, Nijmegen: Workshop Autonomy and Independent Work.

    Google Scholar 

  • Holmstrom, B. R. and J. Tirole, 1989, ‘The Theory of the Firm’, in R. Schmallensee and R. D. Willig (eds.),Handbook of Industrial Organisation, Amsterdam: North-Holland.

    Google Scholar 

  • Jarillo, J. C., 1988, ‘On Strategic Networks’,Strategic Management Journal 9(3), 111–119.

    Google Scholar 

  • Jong, M. de and J. G. Lambooy, 1986, ‘Urban Dynamics and the New Firm: the Position of Amsterdam in the Northern Rimcity’, in D. Keeble and E. Wever (eds.),New Firms in Regional Development in Europe, London: Croom Helms.

    Google Scholar 

  • Kottler, P., L. Fahey and S. Jatusripitak, 1985,The New Competition, Englewood: Prentice-Hall.

    Google Scholar 

  • Krugman, P., 1991,Geography and Trade, Cambridge: MIT Press.

    Google Scholar 

  • Lambooy, J. G. and W. J. J. Manshanden, 1992, ‘The Renewed West of the Netherlands, from Down-town to Suburbia’, The Hague: European cities Conference paper.

    Google Scholar 

  • Loveman, G. and W. Sengenberger, 1991, ‘The Re-emergence of Small-Scale Production: An International Comparison’,Small Business Economics 3(1), 1–38.

    Google Scholar 

  • Marshall, A., 1920,Principles of Economics, London: Macmillan.

    Google Scholar 

  • Mendez-Rivero, D., 1991,Informalization of the Venezuelan Labour Force, The Hague: Institute of Social Studies, Unpublished Phil Thesis.

    Google Scholar 

  • O'Farrell, P., 1986, ‘The Nature of New Firms in Ireland’, in D. Keeble and E. Wever (eds.),New Firms in Regional Development in Europe, London: Crooms Helm.

    Google Scholar 

  • Piore, M.J. and C. Sabel, 1984,The Second Industrial Divide, New York: Basic Books.

    Google Scholar 

  • Porter, M. P., 1990,The Competitive Advantage of Nations, New York: The Free Press.

    Google Scholar 

  • Pyke, F., G. Becattini and W. Sengenberger (eds.), 1990,Industrial Districts and Inter-firm Co-operation in Italy, Geneva: International Institute for Labour Studies.

    Google Scholar 

  • Reich, R. B. 1991,The Work of Nations: Preparing Ourselves for the 21st Century, New York: Vintage Books.

    Google Scholar 

  • Scitovsky, T., 1954, ‘Two Concepts of External Economies’,Journal of Political Economy 31(2), 116–142.

    Google Scholar 

  • Sekhar, A., 1983, ‘Industrial Location Policy: The Indian Experience’, Washington: IBRD Working paper.

    Google Scholar 

  • Sengenberger, W., G. W. Loveman and M. J. Piore (eds.), 1990,The Re-emergence of Small Enterprises: Industrial Restructuring in Developing Countries, Geneva: International Institute for Labour Studies.

    Google Scholar 

  • Spath, B., 1992, ‘The Institutional Environmental and Communities of Small Firms’, in J. Rasmussen (ed.),Flexible Specialisation: A New View on Small Industry, IDS Bulletin 23(3), 8–15.

    Google Scholar 

  • Storper, M., 1989, ‘The Transition to Flexible Specialisation in the US Firm Industry’,Cambridge Journal of Economics 13(1), 17–32.

    Google Scholar 

  • Villaran, E. F., 1992, ‘Comments’, Geneva, UNCTAD symposium on the role of industrial districts in the transfer, adaptation and diffusion of technology.

  • Williamson, O., 1975,Markets or Hierarchies: Analysis of Antitrust Implication, New York: The Free Press.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and permissions

About this article

Cite this article

van Dijk, M.P. Flexible specialisation, the new competition and industrial districts. Small Bus Econ 7, 15–27 (1995). https://doi.org/10.1007/BF01074313

Download citation

  • Accepted:

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF01074313

Keywords

Navigation