Clusters Go Green: Drivers of Environmental Sustainability in Local Networks of SMEs

Literature on eco-parks and eco-clusters has emphasized the opportunities for the coupling of local economic development and sustainability, going beyond firms’ green strategies to include also supply chains and local networks of firms. Studies have described the conditions and policies for the development of new sustainable economic activities in specific areas based on the industrial ecology approach. In contrast, little attention has been given to analysing how existing industrial districts are facing the chances of the new competitive pressures related to sustainability. The paper investigates the drivers and the evolutionary paths of industrial districts towards environmental sustainability. The empirical analysis is based on qualitative case studies of two Italian industrial districts specializing in the production of leather (Arzignano) and tiles (Sassuolo). Managerial and policy implications are provided.