The Impact of Industrial District Affiliation on Firm Value Creation

F. Xavier Molina-Morales and M. Teresa Martínez-Fernaández

European Planning Studies, 2003, vol. 11, issue 2, 155-170

Abstract: This article reviews ideas from the industrial district literature. In particular, it compares industrial district members and non-members in terms of value creation capacity. We have proposed a set of explanatory factors including common reputation, intensity of exchange and combination of resources, and participation of local institutions. This model has been applied to a sample of 350 manufacturing firms in order to test the case of the Valencia region. Findings suggest a positive association between district membership, possession of competitive factors and value creation measured by innovation. Implications of the article have relevant prescriptions for regional planners and individual entrepreneurs.

Date: 2003
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DOI: 10.1080/0965431032000072855

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