IDEAS home Printed from https://ideas.repec.org/p/ehl/lserod/128633.html

Towards a paradigm of proximity economy for competitive and resilient cities and territories

Author

Listed:
  • Tricarico, Luca
  • Hausemer, Pierre
  • Gorman, Nessa
  • Squillante, Francesca

Abstract

This paper explores the concept of the Proximity Economy, a human-centered model focused on short value chains and social interactions within local contexts, as a strategic response to global challenges like climate change, supply chain disruptions, and the twin green and digital transitions. Amid ongoing crises, e.g., pandemic, economic, geopolitical, and environmental, reconceptualizing economic development paradigms is crucial for fostering resilient and sustainable solutions. The Proximity Economy integrates local production, distribution, and consumption, supporting sustainable innovation and the competitiveness of local enterprises. It aligns with the European Union’s industrial strategy and Sustainable Development Goals, such as climate action (SDG 13) and reducing inequalities (SDG 10). This paper reviews the socio-economic impacts of the Proximity Economy, considering its connections with the circular and social economies, and identifies relevant policies for its promotion at the European, national, and local levels. Through sectoral analysis and examples, the paper provides a framework for evaluating the economic, environmental, and social outcomes of this model, offering recommendations for its future development and implementation.

Suggested Citation

  • Tricarico, Luca & Hausemer, Pierre & Gorman, Nessa & Squillante, Francesca, 2025. "Towards a paradigm of proximity economy for competitive and resilient cities and territories," LSE Research Online Documents on Economics 128633, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:128633
    as

    Download full text from publisher

    File URL: https://researchonline.lse.ac.uk/id/eprint/128633/
    File Function: Open access version.
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Roderik Ponds & Frank Van Oort & Koen Frenken, 2007. "The geographical and institutional proximity of research collaboration," Papers in Regional Science, Wiley Blackwell, vol. 86(3), pages 423-443, August.
    2. Roberta Capello, 2009. "Indivisibilities, Synergy And Proximity: The Need For An Integrated Approach To Agglomeration Economies," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 100(2), pages 145-159, April.
    3. Ron Martin & Peter Sunley, 2015. "On the notion of regional economic resilience: conceptualization and explanation," Journal of Economic Geography, Oxford University Press, vol. 15(1), pages 1-42.
    4. Donato Iacobucci & Francesco Perugini, 2021. "Entrepreneurial ecosystems and economic resilience at local level," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 33(9-10), pages 689-716, October.
    5. James Evans & Andrew Karvonen, 2014. "‘Give Me a Laboratory and I Will Lower Your Carbon Footprint!’ — Urban Laboratories and the Governance of Low-Carbon Futures," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 38(2), pages 413-430, March.
    6. Dominik Bertram & Tobias Chilla & Carola Wilhelm, 2021. "Short Value Chains in Food Production: The Role of Spatial Proximity for Economic and Land Use Dynamics," Land, MDPI, vol. 10(9), pages 1-21, September.
    7. Evert Meijers & Martijn Burger & Roberto Camagni & Roberta Capello & Andrea Caragliu, 2016. "Static vs. dynamic agglomeration economies. Spatial context and structural evolution behind urban growth," Papers in Regional Science, Wiley Blackwell, vol. 95(1), pages 133-158, March.
    8. Michael N. Taptich & Arpad Horvath & Mikhail V. Chester, 2016. "Worldwide Greenhouse Gas Reduction Potentials in Transportation by 2050," Journal of Industrial Ecology, Yale University, vol. 20(2), pages 329-340, April.
    9. David L. Rigby & W. Mark Brown, 2015. "Who Benefits from Agglomeration?," Regional Studies, Taylor & Francis Journals, vol. 49(1), pages 28-43, January.
    10. Ron Boschma, 2005. "Proximity and Innovation: A Critical Assessment," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 61-74.
    11. Roberto Dellisanti, 2023. "Spatial patterns of Cultural and Creative Industries: Creativity and filière behind concentration," Papers in Regional Science, Wiley Blackwell, vol. 102(3), pages 533-564, June.
    12. Marietta E. A. Haffner & Kath Hulse, 2021. "A fresh look at contemporary perspectives on urban housing affordability," International Journal of Urban Sciences, Taylor & Francis Journals, vol. 25(S1), pages 59-79, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Luca Tricarico & Pierre Hausemer & Nessa Gorman & Francesca Squillante, 2025. "Towards a Paradigm of Proximity Economy for Competitive and Resilient Cities and Territories," Social Sciences, MDPI, vol. 14(7), pages 1-23, June.
    2. Patricia Hemert & Peter Nijkamp & Enno Masurel, 2013. "From innovation to commercialization through networks and agglomerations: analysis of sources of innovation, innovation capabilities and performance of Dutch SMEs," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(2), pages 425-452, April.
    3. Nicola Cortinovis & Frank van Oort, 2017. "Between spilling over and boiling down: network-mediated spillovers, absorptive capacity and productivity in European regions," Tinbergen Institute Discussion Papers 17-118/VI, Tinbergen Institute.
    4. Der-Shiuan Lee, 2018. "Towards Urban Resilience through Inter-City Networks of Co-Invention: A Case Study of U.S. Cities," Sustainability, MDPI, vol. 10(2), pages 1-23, January.
    5. Roberto Dellisanti, 2023. "Spatial patterns of Cultural and Creative Industries: Creativity and filière behind concentration," Papers in Regional Science, Wiley Blackwell, vol. 102(3), pages 533-564, June.
    6. Zhang, Ruixue & Tang, Yuyan & Li, Yongli & Zhang, Yuanxin, 2025. "What motivates the collaborative innovation relationship in infrastructure projects from dynamic network perspective," Technovation, Elsevier, vol. 148(C).
    7. Lorenzo Cassi & Anne Plunket, 2014. "Proximity, network formation and inventive performance: in search of the proximity paradox," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(2), pages 395-422, September.
    8. Marte C.W. Solheim & Ron Boschma & Sverre Herstad, 2018. "Related variety, unrelated variety and the novelty content of firm innovation in urban and non-urban locations," Papers in Evolutionary Economic Geography (PEEG) 1836, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2018.
    9. Sara Amoroso & Alex Coad & Nicola Grassano, 2017. "European R&D networks: A snapshot from the 7th EU Framework Programme," JRC Working Papers on Corporate R&D and Innovation JRC107546, Joint Research Centre (Seville site).
    10. Ferretti, Marco & Guerini, Massimiliano & Panetti, Eva & Parmentola, Adele, 2022. "The partner next door? The effect of micro-geographical proximity on intra-cluster inter-organizational relationships," Technovation, Elsevier, vol. 111(C).
    11. Tom Broekel & Wladimir Mueller, 2018. "Critical links in knowledge networks – What about proximities and gatekeeper organisations?," Industry and Innovation, Taylor & Francis Journals, vol. 25(10), pages 919-939, November.
    12. Byeongwoo KANG & Kazuyuki MOTOHASHI, 2020. "Local Industry Influence on Commercialization of University Research by University Startups," Discussion papers 20086, Research Institute of Economy, Trade and Industry (RIETI).
    13. Stefano Usai & Emanuela Marrocu & Raffaele Paci, 2017. "Networks, Proximities, and Interfirm Knowledge Exchanges," International Regional Science Review, , vol. 40(4), pages 377-404, July.
    14. Hiroyasu Inoue & Kentaro Nakajima & Yukiko Umeno Saito, 2019. "Localization of collaborations in knowledge creation," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 62(1), pages 119-140, February.
    15. Martin M�ller & Allison Stewart, 2016. "Does Temporary Geographical Proximity Predict Learning? Knowledge Dynamics in the Olympic Games," Regional Studies, Taylor & Francis Journals, vol. 50(3), pages 377-390, March.
    16. Francesco Molica & Francesco Cappellano & Teemu Makkonen, 2025. "Re-thinking Regional Innovation Systems in the age of de-globalization," Working Papers TIMES² 2025-080, ULB -- Universite Libre de Bruxelles.
    17. Frédérique Bone & Michael M. Hopkins & Ismael Ràfols & Jordi Molas-Gallart & Puay Tang & Gail Davey & Antony M. Carr, 2019. "DARE to be different? Applying diversity indicators to the evaluation of collaborative research projects," SPRU Working Paper Series 2019-09, SPRU - Science Policy Research Unit, University of Sussex Business School.
    18. Luisa Alamá-Sabater & Joan Crespo & Miguel Ángel Márquez & Emili Tortosa-Ausina, 2026. "Population–employment dynamics in the European Union: Does innovation lead or follow?," Working Papers 2026/08, Economics Department, Universitat Jaume I, Castellón (Spain).
    19. Haasnoot, Cornelis W. & de Vaal, Albert, 2022. "Heterogeneous firms and cluster externalities: how asymmetric effects at the firm level affect cluster productivity," Research Policy, Elsevier, vol. 51(6).
    20. Rune Dahl Fitjar & Franz Huber & Andrés Rodríguez-Pose, 2016. "Not too close, not too far: testing the Goldilocks principle of ‘optimal’ distance in innovation networks," Industry and Innovation, Taylor & Francis Journals, vol. 23(6), pages 465-487, August.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ehl:lserod:128633. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: LSERO Manager (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.