Globalized Markets and Startup Dynamics in Mature Manufacturing Industries

Abstract

In a globalized economy and becoming more knowledge-based, two apparently contradictory phenomena are shaping the organization and location of many mature economic activities: a general tendency of firms to agglomerate geographically while traditional clusters (and notably industrial districts) are facing a period of crisis in their identity, structure, and cohesion. Since the turn of the new century, regulatory changes, intensified global competition, rapid changes in technology and markets, and increasing complexity and uncertainty in the business environment, have created a more dynamic and globalized market conditions for the European firms of mature industrial sectors, like textile and clothing (T&C) industry. As a result of these changes and of the firms’ responses, the future of this industry and of the regions where it is located has been put into question. The aim of this research is to determine the territorial dynamics of startups in the textile and clothing industry in Spain. For this research, we have adopted a historical perspective focused on analysis of the intersection of the geographical locations of startups in Spain (the industrial district effect) and the main types of activities performed by new-venture firms (the subsector effect). Our results have important implications for the theory and practice in the textile and clothing industry: the need to distinguish the location of a firm when both analyzing its performance and formulating and implementing public policies.