Large Firms, Small Firms, and the Governance of Flexible Specialization: The Case of Baden Württemberg and Socialized Risk

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Abstract
The southwest German province of Baden W ürttemberg has been known for a long time as the home of giant and hugely successful multinational firms, such as car manufacturer Daimler Benz and auto parts supplier Robert Bosch. But in the last several years attention has focused on the dense networks of very successful small and medium-size manufacturing enterprises in the region. The fascination with these producers stems from their capacity to flourish in a highly competitive manufacturing environment characterized by rapid technological change and rising development costs.

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