Small multinational groups in the Italian industrial districts: interpretations and empirical evidence from the mechanical engineering industry

The formation within districts of «multinational groups» composed of local enterprises and units with a parent company in Italy and affiliates in other countries is an issue closely linked to internationalisation of the small and medium-sized enterprises (SMEs), that constitute the fundamental ecology of the country’s industrial districts. This paper examines the several aspects of the question starting from a series of stylised facts, showing that the key features of Italy’s internationalisation pattern – exports versus foreign direct investments (FDIs) – make it atypical when compared to the major industrialised countries. It is then asked whether the industrial districts – a some¬what peculiar facet of the Italian economy – have helped to determine this historical divergence. The subject is initially investigated in the light of some distinct features of the Italian districts as discussed in the abundant literature, especially since the 1980s. Some inter¬pretations providing a promising standpoint for understanding the current situation are formulated. Lastly, empirical evidence relating to districts specialising in branches of the mechanical engineering industry is presented. This sectoral picture supports the theoretical assumptions put forward and asks for more investigation extended to the whole of the Italian industrial districts.