Industrial districts: something more than a neighbourhood

The expansion of globalization has led to the relocation of many industrial activities. In particular, this process has affected industrial districts in the traditional industries. However, different districts vary in their capacity to retain activities. The robustness of industrial districts and, in consequence, their capacity to retain core activities at home and thus avoid painful relocations can be analysed by means of the relational capital developed at the district level. The relational structure within the district affects and determines the capacity of innovation of the district firms. This paper analyses the extent to which innovation depends on the amount of relational capital developed at the district level. We have addressed this proposition using internal human mobility, shared vision and trusting co-operation as indicators of the amount and quality of relational capital. In order to support theoretical propositions we have conducted empirical research comparing different industrial districts in the Valencian region of Spain. Research findings suggest a significant association between social capital variables and innovation outcomes. In consequence, these factors can facilitate retaining activities in districts.