Local government,industrial policy and social consensus: the case of Modena (Italy)

The ‘Emilian model’ has become well known as a case of rapid economic growth based on small firms concentrated in ‘industrial districts’. This paper gives a detailed account of three local industrial policy initiatives adopted in Modena, one of the provinces of Emilia-Romagna in which the features of the model appear clearest. The policy of industrial parks was intended to make land available to firms for their orderly development; the loan guarantee consortium aimed to secure special financing for small firms; and the creation of ‘real service centres’ was directed towards supplying information on technology and markets to industrial districts specializing in particular sectors. In addition to describing these interventions, the paper also seeks to demonstrate that a climate of social consensus and strong credibility on the part of local government are necessary prerequisites for the success of local industrial policies.