The current literature of regional agglomerations faces the fundamental problem that it is focused on observing and explaining

The current literature of regional agglomerations faces the fundamental problem that it is focused on observing and explaining the concentration of economic activity in a defined location (a region or a state for instance) with different approaches. This could be attributed to the fact that many of the existing approaches were developed from case study research of existing agglomerations (Becattini, 2002). Such a research strategy is however problematic in two ways. On the one hand, case studies do yield useful results for individual agglomerations but generalising these findings into theoretic concepts is difficult and might imply that the findings will only apply to a specific type of agglomeration. On the other hand, the current theories are unable to explain the dynamics of industrial agglomerations over time. An increased interest in these dynamics has emerged from empirical evidence that once successful economic area are not a guarantee for future prosperity. A substantial body of literature has emerged around case studies of regions’ adaptation to change (for the case of industrial districts, see among others: Guerrieri and Pietrobelli, 2000; Tiberi Vipraio, 1996; Paniccia, 2002; Bianchi, 1998; Belussi, 1999 and Bellandi, 1996). Another set of theories h ted to link this rise and fall of industrial agglomerations to the as attemp