FASHION AND THE GOVERNANCE OF KNOWLEDGE IN A TRADITIONAL INDUSTRY: THE CASE OF THE FOOTWEAR SECTORAL INNOVATION SYSTEM IN THE NORTHERN REGION OF PORTUGAL

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Abstract
The paper deals with the footwear industry as a sectoral innovation system. It particularly focuses on the incidental role of fashion in restructuring and innovation within the footwear production. The importance taken by fashion leads towards a more complicated reading of the recent changes of this industry, regarding its organization, innovation processes, and its mode of technological knowledge governance. More especially, within the traditional footwear industry, low levels of knowledge appropriability were combined with low cumulativeness in firms with low-innovative activity. However, as fashion was incorporated in the footwear industry, technological knowledge governance evolves towards higher cumulativeness at least at the industry level. This contribution discusses in detail the pervasiveness of fashion onto the footwear industry. It especially shows how the numerous agents involved in the fashion knowledge production and their geographical concentration allow for increasing returns when they align well with knowledge cumulativeness at the industry level. It also reveals that the renewed knowledge base of fashion exhibits a higher degree of tacitness and typically develops along an external localized knowledge base.

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