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In recent years the European Community has implemented a policy approach to industry development that favours regional patterns of cooperation amongst small and medium-sized firms, as against the traditional model of scale-intensive industry. The paper argues that this approach is informed by the success of Italian industrial districts, and in particular by the public policy frameworks supporting them. The recent difficulties encountered by the districts, as they seek to adapt to new competitive pressures, provides the focus for a reflection on the new directions that European intervention policy might take.
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Patrizio Bianchi (1993) studied this question.
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