Culture as an Engine of Local Development Processes: System‐Wide Cultural Districts I: Theory

Abstract Building on the early works of A lfred M arshall, analyses of local economies have emphasized the spatial function of clusters and industrial districts in terms of external economies of localization and agglomeration. Recent literature has emphasized the importance of culture and the complementarities between culture and local tangible and intangible assets. This paper aims to provide an analytical foundation for these processes with a view to developing tools for policy design, analysis and evaluation. By “system‐wide cultural districts,” we refer to a new approach to local development where cultural production and participation present significant strategic complementarities with other production chains. In this view, culture drives the accumulation of intangible assets such as human, social, and cultural/symbolic capital, thereby fostering economic and social growth and environmental sustainability.