In this article, we analyse the recent shift that the textile-clothing sector has undergone in the Valencian Central Counties, focusing on the role played by the institutions of the local innovation system. This paper presents the main results derived from various research projects undertaken between 2004 and 2009. The analytical framework used is based on the innovation systems approach, which emphasises not only the existence of organisations supporting the industry but also their behavioural relationships. Thus, we identify the sources of innovation in an industry localised in a peripheral region with low technological intensity. Currently, this sector is undergoing a structural adjustment process due to the opening of international markets.
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