Local manufacturing systems and global economy: are they compatible? The case of the Italian eyewear district

In the era of global economy, are local manufacturing systems still playing a role or are they destined to fade away? No unequivocal answer to this question can be found in the literature. Some think that globalization exposes all the limits of local industrial systems. Others consider the contraposition between global and local to be only apparent. There could be, however, a clear relation between the firm’s competitiveness on the international market and its territorial roots. The present paper focuses on one of the most important local systems in Italy, i.e. the eyewear district. Based on empirical research, the study analyzes the evolution of the eyewear industry, the strategies used by the larger producers to face the current competitive challenges and the consequences of such actions on the local supply system. It is shown that the district has lost most of its traditional features and inter-organizational relations have significantly changed. Opportunities arising from new technologies and global economy seem to favor better equipped, large-sized enterprises rather than small suppliers, or in any case, single units or groups rather than the system. Finally, some suggestions are provided for entrepreneurs or managers operating in industrial districts, concerning vertical integration and sourcing choices (main-contracting firms), and technological and managerial levers that could better qualify the supply offer (sub-contracting firms).