Product innovation and strategic patterns of firms in a diversified local economy the case of Bergamo

Abstract

This paper is an attempt to evaluate the specific effects generated on a local economy system by strategic behaviour of firms which have adopted product innovations. We provide: (i) the theoretical assumptions that the impact of innovation on a local economy differs according to its economic structure; and the definition of the specific expected consequences of this impact in an industrialized and diversified area; (ii) the description of the actual behaviours in such an area, undertaken by a group of firms which have adopted product innovations; (iii) an answer to the crucial question of the greater or smaller degree of interaction and integration with the local economic structure generated by the innovative choices of firms; and (iv) a suggestion for some guidelines for local policies. We argue that one to the most important goals of the innovation process is to reach a higher internal — as well as external — competitive level. A second major goal is the strengthening of a ‘culture of flexibility’ which allows firms to think in terms of evolution and not of turbulence. Thirdly, local authorities have to pay attention to the externality issue.