Regional patterns of innovation clustering and economic performance

When discussing innovation dynamics in western economies during the age of globalisation, innovation and manufacturing are often perceived as two geographically distinct spheres of activity: The former tends to be located close to home, while the latter is foot-loose and can be re-located based primarily on cost considerations. The analysis presented in this thesis offers evidence that this is not always the case. Location still matters and this is demonstrated all across Europe, as high-performing clusters are identified not only where they are expected (e.g. auto manufacturing in Germany) but also in regions with centuries of history in specialization that have since evolved, such as the textile sector in Flanders and the wood and metal sector in Sweden. These clusters appeared to be linked to unexpected aspects of economic performance, since, for instance, the more ‘traditional’ cluster seems connected to less unemployment.