New industrial space Jinn-Yuh Hsu Ling-I Chu National Taiwan University The concept of “new industrial space” was developed by Allen Scott in 1988 to describe the agglomeration of highly specialized frms that took place in various parts of the world in the late 1970s and the 1980s. Scott argues that these small frms cluster in one place because proximity to one another allows them to reduce transaction costs. The concept was often considered as a part of the “fexible specialization” thesis proposed by French regulation school scholars, who argued that capitalism has undergone a profound trans- formation since the 1970s, from “Fordism” to “post-Fordism.” Here, “Fordism” refers to the system of mass production in search of economy of scale. It is characterized by vertically inte- grated global frms, Keynesian welfare states, and unionized labor. In contrast, “post-Fordism” is a more fexible form of production that seeks to achieve economies of scope. It is characterized by vertically disintegrated frms engaging in batch and specialized production, neoliberal regimes of governance, and the emergence of informal, contract-based, or self-employed workers. While in the 1980s regulation school scholars had interrogated issues such as vertical disintegration (Piore and Sabel 1984) and the emergence of fexible labor (Brusco 1982), Scott points out that transformation to post-Fordism has a spatial dimension: that the big factories that used to dominate the industrial landscaping are now giving way to industrial districts. The International Encyclopedia of Geography. Edited by Douglas Richardson, Noel Castree, Michael F. Goodchild, Audrey Kobayashi, Weidong Liu, and Richard A. Marston. © 2017 John Wiley & Sons, Ltd. Published 2017 by John Wiley & Sons, Ltd. DOI: 10.1002/9781118786352.wbieg0575 One of the cases of new industrial spaces that Scott examined was the “Third Italy.” The term refers to the central and northeast regions of Italy (including Tuscany, Umbria, Marche, Emilia-Romagna, Veneto, Friuli, and Trentino-Alto Adige/Südtirol), which in the 1970s and 1980s witnessed the clustering of small artisan frms and workshops. Each region specialized in a range of loosely related products and each workshop usually had 5–50 work- ers (often less than 10). The wide range of products in each cluster suggested a shift from economies of scale to economies of scope. Addi- tionally, these small frms and workshops were known for producing high quality products and employing highly skilled and well-paid workers. The workshops were also very design-oriented and multidisciplinary, involving collaboration between entrepreneurs, designers, engineers, and workers. This unique industrial structure was in sharp contrast to the large-scale mass pro- duction systems seen in Turin, Milan, and Genoa (the First Italy) and the underdeveloped South (the Second Italy). Scott also pointed out that, because these vertically disintegrated frms often do not need to have direct contact with estab- lished industries, and because they prefer places without the presence of big unions, new indus- trial spaces often appear either in depressed urban enclaves (e.g., the clustering of high-tech frms in Paris’s southern suburb) or in underdeveloped regions (e.g., the Third Italy and Silicon Valley). Industrial agglomeration is certainly not a new issue in economic geography. In the late nineteenth century, Alfred Marshall, in Principles of Economics (1890), had examined the agglomeration of textile manufacturers in England. He argued that textile manufacturers