Localised Learning: Why Are Inter-firm Learning Patterns Institutionalised within Particular Localities?

In this speculative paper, it is argued that learning is an evolutionary process, operating at the level of the individual, the firm, and organised markets. Why these latter may be localised is investigated. Learning as such is depicted as an interactive process of reproducing and/or creating knowledge through communication, and learning patterns are seen as institutionalised in different contexts. Different possible such contexts are discussed, and industrial districts are proposed as relevant. Patterns of inter-firm learning may evolve and become institutionalised in an industrial district, because two important spatial properties of localisation - proximity and coherence - are combined here. As a result, some industrial districts posses higher-order capabilities with respect to localised inter-firm learning.