Industrial Agglomerations as Localised Networks: The Case of the Portuguese Injection Mould Industry

Abstract

A resurgence of interest in industrial agglomerations can be found among many different academic disciplines. This trend has been accompanied by a focus on how spatial proximity and the emergence of links between colocated actors may generate benefits for firms, namely, in the generation and diffusion of knowledge. By conceiving industrial agglomerations as territorially based networks, we argue that the dynamics in connections internal to those networks affect and are affected by local institutions as well as connections external to the territory. Our study of the injection mould industry cluster at Marinha Grande in Portugal suggests that firms profit from the emergence of relationships between colocated actors and other agglomeration benefits. However, we suggest that the potential of the industry to generate new knowledge appears to be founded on the patterns of interfirm connections, which selectively connect diverse capabilities both within and outside the agglomeration.