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The paper aims at advancing our understanding of the architecture and diversification dynamics of industrial ecosystems, and identifying policies for the innovative industrial renewal of mature economies. Industrial ecosystems are here defined as multi-tiered production systems involving heterogeneous agents operating in sectoral value chains and contributing to the capability domains of the ecosystem (and its participants) with closely complementary but dissimilar sets of resources and capabilities. The geographical boundaries of the industrial ecosystem are shaped by the evolving interdependencies linking organisations within the ecosystem and by the new linkages consolidating beyond that. Thus, the industrial ecosystem is a structured production space centred mainly on its productive organisations, as well as other institutions, intermediaries and demand-side actors, purposefully involved in co-value creation processes along various types of diversification and innovative industrial renewal trajectories. Drawing on a five-year research programme in the Emilia Romagna industrial ecosystem, a number of case studies are introduced to highlight these trajectories and the underpinning structural learning dynamics. The paper concludes by identifying a number of policy implications, focusing on strategies for enhancing the structural readiness of the industrial ecosystem and promoting smart diversification and innovative industrial renewal policies.  JEL classifications: D20, O25, O30

The architecture and dynamics of industrial ecosystems: diversification and innovative industrial renewal in Emilia Romagna