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The Italian industrial system is characterized by the presence of small and midsized firms that take advantage of the economics of agglomeration by forming particular local systems, known as industrial districts. These districts represent the backbone of the Italian industrial sector. However, the districts’ competitive advantage, which had allowed Italy become a major economic actor, has been slowed by the crisis of the 2000s and by the Great Recession of 2009. This paper focuses on the persistence in and the changes to the trade advantage of the Italian industrial districts. JEL Classification codes F10, L16, R11, R32