Upgrading Trentino’s industrial base: A relatedness-based roadmap

Oecd

No 2026/09, OECD Local Economic and Employment Development (LEED) Papers from OECD Publishing

Abstract: Diversifying the industrial base of the Autonomous Province of Trento (Trentino, Italy) is an important policy priority for strengthening productivity growth, given the region’s comparatively smaller manufacturing and knowledge-intensive service sectors relative to peer regions. Drawing on sector-level employment data for 107 Italian regions and 611 local labour market systems, this paper maps the relatedness between economic activities in Italy to identify Trentino’s existing clusters of strength and realistic pathways for industrial upgrading. The analysis underscores that diversification opportunities are shaped by capabilities embedded in current specialisation patterns, reflecting the path-dependent nature of industrial development. The paper proposes a tailored industrial strategy that matches sector-specific interventions to local conditions: supporting competitiveness in established clusters, scaling up related emerging industries and fostering experimental diversification into strategic fields.

Keywords: cluster development; economic complexity; industrial upgrading; relatedness; subnational productivity (search for similar items in EconPapers)
JEL-codes: O14 O25 R11 R12 (search for similar items in EconPapers)
Date: 2026-06-09
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Persistent link: https://EconPapers.repec.org/RePEc:oec:cfeaaa:2026/09-en

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