TheItalianCeramicTileIndustryBytheearly1990sItalianfirmswerebyfartheworldleadersintheproductionandexportofCeramicroofingandfloortiles,accountingforover30%ofworldproductionand60%ofworldexports.Theriseofglobalpre-eminenceoftheItalianTileIndustrywasbasedonthesuperiormechanicalandaestheticqualitiesofItaliantiles.ItaliantileproductionisconcentratedintheEmilia-RomaginaregionofNorthernItalyaroundsmalltownofSassuolo.IntheSassuoloregiontherearehundredsoffirmsinvolvedintheCeramictileindustryandinvarioussupportingindustriessuchasthemanufactureofglazes,enamelsandceramictileproductionequipment.Asaresult,Sassuoloboaststhegreatestconcentrationintheworldoffirmsintheceramictileandsupportingindustries.TheCeramicTileIndustryinSassuologrewoutoftheearthernwareandcrockeryIndustry,whichcouldbetracedtothe13thcentury.DemandforceramictilesgrewrapidlyinItalyintheyearsimmediatelyaftertheSecondWorldWars.ReconstructionaftertheWarcreatedaboominthebuildingindustry.OnereasonforthehighdomesticdemandwasItaly’sMediterraneanClimate(CeramicfloortileswerecooltothetouchinWarmWeather).TherewasalsoatraditioninItalyofusingnaturalstonematerialforflooringasopposedtocarpetingorwood.Becauseofthistradition,percapitatileconsumptioninItalyhaslongbeenthehighestintheworld.In1987itstoodat3.33squaremetrespercapitafollowedby2.55inSpainand1.81inSwitzerland.Asaresultofbloomingdemand,thenumberofceramictilefirmsintheSassuoloregiongrewrapidlyduringthe1950sand1960s.In1955therewere14tilefirmsintheregion;by1962thefigurehadleapedto102.Inadditiontoboomingdemand,thelowcostofsettingupceramictilebusinessspurredthisrapidgrowthinthenumberofenterprises.RivalrybetweenfirmsinSassuoloregionwasintense.Theyhadtocompletevigorouslyagainsteachothertogetaccesstoretailoutlets.Retailersdemandedhighquality,lowcost,andaestheticallypleasingtles.Firmsconstantlysoughttogainanedgeagainsteachotherintechnology,designanddistribution.Innovationswereusuallyknownwithinamatterofweeksandquicklycopiedbyrivals.Firmsseekingaleadershipposition,whetherthatbeinthet