Innovation and Performance of SMEs in Italy: the Relevance of Spatial Aspects

Roberto Camagni and Roberta Capello

Chapter 9 in Innovation, Networks and Localities, 1999, pp 181-214 from Springer

Abstract: Abstract Since the 1970s, the role of small and medium firms in economic development has widely come to the fore in regional economic theory. During this period, especially in Italy, the good performance of regions with a high share of small firms contrasted with the poor and decreasing rate of growth of the traditional large firms of the North-Western part of the country. The so-called ‘Third Italy’ phenomenon became widely known, indicating the high economic performance of North-Eastern and Central regions (NEC)1. A long wave of economic success accompanied the regions of the Third Italy — a success which was explained by the high flexibility of small firms with respect to market volatility, their innovativeness in terms of customised production, and the existence of district economies accompanying territorial specialisation.

Keywords: Small Firm; Large Firm; Employment Growth; Industrial Structure; Industrial District (search for similar items in EconPapers)
Date: 1999
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DOI: 10.1007/978-3-642-58524-1_9

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