The Internationalization of Production by Italian Industrial Districts' Firms: Structural and Behavioural Determinants

The internationalization of production by Italian industrial districts’ firms: structural and behavioural determinants, Regional Studies. The paper argues that structural and behavioural determinants combine to influence internationalization of production through foreign direct investment (FDI) by industrial districts’ firms. As far as the former, leadership effects, represented by the presence of large firms within the district, and Porterian effects, denoted by the intensity of domestic rivalry, positively influence the likelihood that district firms will start internationalize through FDI. Moreover, spillovers induced by the presence of foreign-owned multinational corporations positively impact on the district’s degree of internationalization, provided it has already autonomously developed the ability to grow internationally. As far as behavioural features, previous export relationships increase the district firms’ likelihood of undertaking FDI, while innovative capacity joins and strengthens internationalization processes already started.