Abstract
Our main purpose is to analyse the evolution experienced by a local productive system based on SMEs specialising in a traditional food segment: the nougat sector. This local system has undergone a serious crisis in the last decade due to a variety of factors. The Xixona SMEs have failed to behave as a real local productive system, fully integrated and benefiting from scale and agglomeration economies. In our empirically-based study on 21 Xixona SMEs, we look into the reasons that explain their failure to understand the nature of change, and we provide a Strategic Innovation Programme, which in our view, would help to convert the present Xixona productive system into an authentic local productive system.
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