The industrial district is a cluster of companies, generally in small and media size, located in a territory delimited, each bound by historical ties, specialized in manufacturing and mutually complemented by ties of economic and social development.
"The industrial district in its canonical sense, is represented by a local system characterized by the presence of the main productive activity carried out by a group of small independent firms, but they are highly specialized in different stages of a production process itself. This unique organizational model allows business to develop synergies that result in more efficient production than would occur within a single large establishment. In Italy the legal recognition of the status of "industrial district" has been enshrined in law 317, 1991 (Action for the innovation and development of small enterprises), according to these provisions, the districts are defined geographical areas characterized by high local concentration of small businesses with particular reference to the relationship between the presence of enterprises and the resident population and productive specialization of all the production units involved. "
(from the site of CNEL)
Federation of Italian Districts
Regulations on the Italian Industrial Districts
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