In the last decades, a large portion of manufacturing activities have been progressively relocated in developing countries consistently with the “smile” framework that depicts a limited role of manufacturing in the process of value creation. Recent studies have put under scrutiny this scenario by stressing the value-added linkages between manufacturing, innovation and marketing, also emphasizing backshoring initiatives put in place by Western firms. The chapter aims at exploring the role of the district as local manufacturing system in the district firms’ strategies of manufacturing location, within the GVC framework. Based on the analysis of six case studies of district firms specializing in fashion (shoes, sportswear, eyewear) and furniture industries, results show that district manufacturing location is required for innovation but limited to high-quality products and upgrading strategies, with little relevance of backshoring. There is a complementarity between global (economies of scale) and local productions, where the district is a source of “uniqueness” related to product culture and complex specialized competences that has to be renovated over time.
