Migrant entrepreneurs and local networks in industrial districts

Migrant firms are increasing in local manufacturing systems. Their presence is expected to generate beneficial effects in host regions by stimulating trade flows and knowledge diffusion. However, the opportunity for migrant entrepreneurs to prosper depends on their ability to establish linkages with the local firm networks. Using an innovative database on Italian micro and small businesses, this paper investigates the performance of a sample of migrant and indigenous firms, providing evidence of a significant gap. The results suggest that manufacturing systems that exclude migrant firms are missing a key opportunity to integrate a valuable source of diversity.