| Production Sectors and Clusters |
The main productive sectors in the HiCo Region are the following: mechanical, timber and furniture, knives and agro-food.
Four industrial clusters ("distretti industriali") recognized by the Law operate in the-above mentioned sectors. Industrial clusters are local homogeneous production systems, characterized by a high concentration of industrial companies (ratio of number of companies to resident population), which are usually small or medium-sized enterprises with a high production specialisation (ratio of people employed in specialized activities to total people employed in manufacturing activities).
These characteristics, together with other possible indicators, contribute to the identification of an industrial cluster reference territory, which is generally made up of one or more adjacent municipalities.
Clusters are generally made up of small and medium-sized enterprises with a strong handicraft tradition.

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A cluster is defined as a group of inter-related industries (research institutes, universities…) whose linkages mutually reinforce and enhance their competitive advantage.
Michael Porter, 1990.
Industrial districts are local homogeneous production systems, characterized by a high concentration of industrial companies (ratio of number of companies to resident population), which are usually small or medium-sized enterprises with a high production specialization (ratio of people employed in specialized activities to total people employed in manufacturing activities). These characteristics, together with other possible indicators, contribute to the identification of an industrial district reference territory, which is generally made up of one or more adjacent municipalities. Districts are generally made up of small and medium-sized enterprises with a strong handicraft tradition.
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The Udine Chair District comprises three main municipalities – Manzano, San Giovanni al Natisone and Corno di Rosazzo – which make up what is known as the “Triangolo della sedia” and manufacture approximately 80% of the Italian production of chairs.
The Agro-food Cluster is located in the central part of Friuli Venezia Giulia. Set up by the Regional Authority in March 2000 (it was previously denominated Ham District), the District covers the municipalities of San Daniele del Friuli, Coseano, Dignano, Ragogna, Fagagna, Rive d’Arcano and is made up of approximately 1,600 businesses.
The Maniago Knives Cluster ("Distretto del Coltello"), located in the plains to the North of Pordenone, is made up of 9 municipalities of the province of Pordenone (among which: Maniago, Montereale Valcellina, Fanna, Vajont) and is famous for manufacturing approximately 50% of the Italian production of knives.
Despite being among the smallest Italian regions, Friuli Venezia Giulia boasts a long tradition in the production of good wines: there are, in fact, nine Protection Consortia whose objective is to regulate, enhance and support the regional wine tradition, in Italy and abroad.
Friuli Venezia Giulia stood out among the Italian regions as it was the first to give juridical relevance to handicraft clusters, as it had done for industrial clusters. In this way, it expressed its intention to give a status to those production processes having a strong handicraft connotation.
The Chair Cluster