Industry 4.0 in industrial district SMEs: understanding collective knowledge transfer by research and transfer institutes

Purpose This paper aims to understand the contribution of research and transfer institutes (RTIs) to digitising in traditional Marshallian industrial districts (IDs). This study answers how to digitise small and medium-size enterprises (SMEs) in IDs capitalising on RTIs? As collective actors, RTIs introduce change in local/regional innovation systems where they are embedded. Design/methodology/approach This paper uses qualitative evidence based on interviews and secondary data analysis on digitising the Vinalopo Footwear district in Spain. Findings This paper provides empirical insights about how RTIs perform research and development (R&D) and non-R&D activities to digitise, facilitated by leading firms that frequently engage with RTIs. Subsequently, leading firms interact and diffuse Industry 4.0 within their networks of SMEs. RTIs activate digitising in districts avoiding the manifested reluctance of SMEs to engage with them, capitalising on leading firms’ networks orchestration. Research limitations/implications Because of the chosen research approach, the findings are limited to the chosen setting and method. Practical implications This paper includes implications for policymakers, responding to the paradox of how to activate knowledge transfer from RTIs to SMEs, when the latter are reluctant to use RTIs. Originality/value This paper fulfils an identified need to study how to digitise IDs and clusters.