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Alfred Marshall first pointed to the peculiar "industrial atmosphere" of certain clusters, pointing to Sheffield's cutlery industry in the nineteenth century as a prototypical example of this peculiar industrial organisation ( Marshall, 1920). On the contrary, in some cases firms that are close to one another and operate in the same industry entertain complex and variable relationships of competition and collaboration with one another, ranging from formal subcontracting to informal communications that foster innovation and entrepreneurship. Prato, Industrial Districts, Distributed Intelligenceġ.1 It often happens that firms operating in the same industry are also geographically clustered, but, in many or possibly most cases, physical proximity does not affect firms' individualistic behaviour. The model reconstructs interactions of ten types of Pratese firms from 1946 to 1993 on a scale of 1:1.
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Analysis of the structure of production chains can explain the performance of this distributed production system throughout its evolution. The reason is that Prato was able to switch from a competitive advantage based on low prices to a competitive advantage based on the aesthetical features and variety of textiles. Contrary to most textile industry of western Europe and north America, Prato did not die out once average salaries in the region rose towards the world's highest. This article presents a model of the structure of the information flows that underlie the creation of production chains between thousands of small textile firms located in Prato, central Italy. To cite articles published in the Journal of Artificial Societies and Social Simulation, please reference the above information and include paragraph numbers if necessary
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Journal of Artificial Societies and Social Simulation Guido Fioretti: Information Structure and Behaviour