E-Business and SMEs: Preliminary Evidence from Selected Italian Districts

Abstract

The debate on the Information Society shows large agreement on the assumption that the promised benefits will fully display only if the diffusion of ICTs and the Internet will involve all the actors of the socio-economic system. Accordingly, special emphasis is put on the participation of small and medium enterprises (SMEs), but also on public administrations (PAs) as promoters and catalysts of private initiatives. As for SMEs, public intervention concerns both the promotion of fully competitive e-markets and the solution of market failures. However, effective and efficient intervention requires specific information on SMEs' approach to e-commerce, often depending upon specific sector and local condition and in most cases still lacking. In order to identify the need and the scope for public intervention, the paper focuses on a peculiar SMEs-intensive productive environment: the manufacturing industrial district, which traditionally constitutes an examples of winning SMEs' network, characterised by common industrial culture and intense input-output interactions. The paper presents empirical evidence from the Italian districts of Como (textile industry) and Lumezzane (metalwork industry). The research results show that pro-active entrepreneurs are creatively exploring the opportunities offered by the Internet to promote their businesses. However, it is also clear that the transition to the Internet economy still involves a reduced percentage of potential participants, and that institutional actions are needed in order to foster a larger participation.