Growth of subsidiaries  indicates that there will be new establishments that supply materials or inputs to the industry. The other advantages are: Hereditary skill: Special skills for production can be transferred from one generation to another and thus prolong for decades. Use of specialized machinery: Since there is large scale production within the industrial district, the demand for specialized machinery and for skilled labor would be high. Local market for skill: Industrial district is a stable and constant market for skilled labor. Thus, the firms can easily find and employ skilled labor. On the contrary, it might be hard for a firm that is out of the industrial district to find skilled labor. Introduction to new ideas: Firms that operate with the industrial district can pool their ideas and generate new common ideas on production.