This paper first seeks to examine the significance of the spatial/local dimension relative to the globalization process, which is based on the diffusion of information and communication technologies. Second, the paper purports to systematize various contributions found in the literature, which highlight the significance of territorial proximity for the process of production and innovation enhancement of firms. Various different approaches are then presented, which share the understanding that spatial clustering, broadly speaking, facilitate and contribute to the economic and technological dynamic of specific territorial spaces. It is understood that the local environment can not be seen merely as a unit of geographical delimitation, but as an important unit of analysis, which emphasizes the institutional and socioeconomic characteristics of a specific area/region, affecting the competitive and innovative performance of the agents located there.
Local dimension; Local systems of production and innovation; Local productive arrangement