Conclusions: Still Local Economies in Global Capitalism?

Abstract

Abstract The preceding chapters have assessed the role of local production systems (LPSs) in manufacturing industries in four large European countries. These systems comprise geographical areas of economic specialization in which small and medium-sized enterprises (SMEs) are particularly important, in terms of numbers of both productive units and employees. LPSs exist where there are either particular competitive advantages for participation by clusters of SMEs as opposed to large corporations, or where such clusters at least stand as good a chance as large firms. Small firms may work through a more or less intense co-operation among themselves, or with larger firms located in the same area, or by making use of local facilities provided by governmental or other external agencies-or a combination of all three. These possibilities exist in sectors that share two characteristics. First, the production process is divisible into a number of different levels, each giving scope to specialized firms; second, product markets are fragmented and variable over time and space, giving advantages to niche rather than mass producers.