Local development in Europe - Theoretical models and international comparisons

This paper deals with territory and economic development, highlighting the active role of territory in the development process. The main aim of the paper is to draw policy lessons from theoretical analysis and international comparison. After a short analysis of the debate about the literature on local development (industrial districts, endogenous development, regional innovation systems), the paper deals with the concept of 'local productive system', determined by a strict interaction between economy, society and territory. Local productive systems, through productive linkages and interaction among local actors, produce external economies (to local firms) and collective efficiency. Success stories of local development are based on the production of specific knowledge and resources, on collective learning. The creation of dynamic competitive advantages is, then, the crucial factor for a sustainable local development. It is possible to argue that a 'high road to development', based on quality products and innovation, is the pathway for local and regional development in Europe. Finally, policy lessons for depressed regions are drawn.