Local networks and regional development: Features and perspectives

The aim of this paper is to draw attention to the role of local industrial networks in regional development processes. A one-region model is built with which to investigate the conditions under which local networks arise, distinguishing between spontaneous and supported networks. Taking into account the difference between incomplete and fully coordinated agreements among firms, I establish the values of parameters that allow for the rise of each type of network. Finally, I discuss the positive effects that local networks yield to the regional internal product, making them a reliable support for regional economic take-off.