The Proto-industrial Origins of a Developed Area : Northern Italy (1800-1880). The creation of the Italian "Industrial Triangle" stemed from the steady growth of rural areas which coincided with the localization of a rural industry intended for the market. This industry, concentrated in the Piedmont Alpine region, was the result of both work possibilities opened to the peasant population and the international markets' demand for products, namely for raw and semi-fine silk. Because of the size of the industry's income the division of labour which ensued from it and the high population density of the area, this type of labour market was well suited to the social needs of the proto-workers of Northern Italy. Concerning capital, the peripheral position of the peninsula in the international division of labour necessitated a slow accumulation of capital in the rural areas which was reinforced by the entrepreneurs' rejection of the factory system. But wherever capital existed and developed, it did not affect the basic socio-economic stability of the proto-industrial communities, a phenomenon which explains both the success and limits of the transition towards the second phase of industrialization.