In the last two decades many integrated manufacturing districts have declined. The rapid rise of globally fragmented production has increased competition and provided alternate sources of inputs and technology, encouraging regions to specialize in narrow slices of the value chain. Agglomeration of a single production phase is considered valuable, but the benefits of general co-location are no longer as certain. Nonetheless, in parallel to the rise of stage-specific districts, several established districts focused on traditional industries continued to thrive, and new ones, focusing on new industries, have emerged. Drawing upon insights from three schools of thought: the Markusian logic of multiple evolutionary district models, strategic coupling, and the production of semi-public goods, this paper inquires into the conditions under which integrated-production district can continue to thrive and innovate. Utilizing two case studies, an old Italian district focusing on traditional industry – Brenta’s luxury women’s shoe district, and an emerging district focusing on high technology – Dong-Zhen’s smartphone district, we demonstrate that four conditions seem to be critical: lead firms focus on production and process innovation, and not on novel-technology innovation, specific institutionalization of strategic coupling with the leading MNEs, and public-private partnership in the supply of both unique and hard to imitate semi-public goods, such as specialized human resources, as well as the sustainment of the complete chain of production within the locale.