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This paper investigates some plausible models of evolution of industrial districts (IDs) and clusters in light of the peculiar current features of technology and technological change. An insightful explanation of the variety of possible evolution of industrial clusters is provided focusing on the concept of ‘technological regimes’. Within this interpretative framework, the authors carried out original field studies and survey questionnaires in Italy and Taiwan to gather microeconomic evidence on the restructuring efforts and sources of competitiveness of selected small- and medium-sized enterprises (SMEs). The shift in the technological paradigm, that applies to all sectors, requires a substantial industrial reorganisation. Firms traditionally operating within industrial districts need to reorganise their knowledge linkages from a cluster-based approach to a global and broader approach. A key explanation of the success of SMEs …