In recent times, SMEs of industrial districts have highlighted a new capacity to extend local supply chains and sales networks abroad. Opening the local business-to-business networks towards a global dimension can have either positive or negative impacts on well-established sources of firms’ competitive advantages in terms of competencies and innovation dynamics. At the same time, through such processes those small firms are also transforming their links with local territories. It is necessary to identify a new organization of the international value chain in order coordinate local specificities and sustain value-added activities. In this scenario internationalization strategies have to be coupled with innovation strategies. The paper will analyze internationalization processes of industrial districts SMEs by discussing a research on more than 700 SMEs; the paper will also discuss the relation among internationalization, innovation strategies and performances.