Local Employment and Economic Development (LEED Programme)

Networks of Enterprises and Local Development


Local Productive Systems are not new but are being heralded by many as a solution to the crisis of traditional industrial structures. As unemployment soars, these groupings of firms have proved to be remarkably successful in retaining and increasing their share of employment. Many OECD countries have innovative regions where firms have learned to benefit from the mutual gains made possible by dense vertical and horizontal linkages.
Does the success of these groupings reflect a new and valuable tool for creating employment, or do area-specific, unique social and economic conditions explain the phenomenon? This publication looks at networking and clustering experiences in a wide range of countries. Can these experiences be successfully reproduced elsewhere? Much depends on the answer.

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