Does Geographical Proximty Matters for Innovation? The Case for European Regions

The increasing globalization, challenges for the competitiveness, and resources prioritization are among the causes forcing the European (EU) regions to rethink their overall approach to regional economic development. To deal with such a complexity, EU policy makers deployed a program called Smart Specialisation Strategies (SSS) which aims at consolidating the sources of regional competitive advantage by making effective and efficient use of public investment in R&D. By promoting SSS, national and regional governments are attempting to enhance the competitiveness of firms and clusters. Then, the study of clusters along with their evolutionary and spatial dynamics is put on top of the agenda of EU policy makers. To better understand the determinants of clusters in Europe we first, investigate the role played by technological specialization and diversification; second, find empirical evidence to whether the link between geographical proximity and regional innovation activity exists; finally, explore the co-existence of cluster dynamics and the deployment of SSS.