This case study focuses on the analysis of the Innovation System of the Textile-Clothing Sector in one specific industrial district. The investigation begins by determining the context and the configuration of the main agents, as well as explaining existing behavioural relationships amongst local stakeholders. The paper analyzes the different sources of innovation and specifically it describes the role of institutions in these innovative dynamics in a qualitative way. After this, further research calls for quantitative research tools to complement this preliminary approach.