Margherita Velucchi
Abstract Competition is increasingly crossing borders. However, location still matters: the most successful competitors in an industry often cluster in the same geographic areas and companies use the advantages of location and compete at a global level. When competing across borders, firms can coordinate among different activities in a variety of ways to harness network (cluster) advantages. This paper analyses how  Italian firms’ performance proxied by their propensity to export, depends on geographical and institutional context (regional infrastructures and/or the existence of industrial district). Using a multilevel model, we estimate and distinguish the effect of individual (firm level) and context variables on the performance and internationalization of Italian firms.