International niche market leaders as drivers of industrial districts: a value chain perspective

Abstract Research on Industrial Districts (IDs) as spatial and regional economic phenomena has led to the development of various classification schemes aimed at distinguishing different types of IDs. However, these typologies have largely overlooked the presence and role of International Niche Market Leaders (INMLs). This gap prompts an important question: do IDs that host INMLs fit within existing classifications, or do they require adjustments or extensions to current frameworks? To explore this issue, we analyze two Spanish IDs and demonstrate that INMLs can indeed be embedded within these districts. Notably, INMLs may occupy either upstream or downstream positions in the value chain, and the segments they inhabit often play a critical role in shaping the technological trajectory and internationalization dynamics of the ID. Although leadership within IDs is traditionally attributed to downstream producers, our findings reveal that upstream suppliers can also be central to the district’s development. These insights allow us to refine existing ID typologies by incorporating the role of INMLs. We argue that the relationship between IDs and INMLs is potentially symbiotic: while IDs can nurture the emergence of INMLs, these firms, in turn, can significantly contribute to the evolution and competitiveness of the districts. Based on this perspective, we offer a set of policy recommendations.