Sticky Places in Slippery Space: A Typology of Industrial Districts

Abstract

As advances in transportation and information obliterate distance, cities and regions face a tougher time anchoring income-generating activities. In probing the conditions under which some manage to remain “sticky” places in “slippery” space, this paper rejects the “new industrial district, ” in either its Marshallian or more recent Italianate form, as the dominant paradigmatic solution. I identify three additional types of industrial districts, with quite disparate firm configurations, internal versus external orientations, and governance structures: a hub-and-spoke industrial district, revolving around one or more dominant, externally oriented firms; a satellite platform, an assemblage of unconnected branch plants embedded in external organization links; and the state-anchored district, focused on one or more public-sector institutions. The strengths and weaknesses of each are reviewed. The hub-and-spoke and satellite platform variants are argued to be more prominent in the United States than the other two. The findings suggest that the study of industrial districts requires a broader institutional approach and must encompass embeddedness across district boundaries. The research results suggest that a purely locally targeted development strategy will fail to achieve its goals.