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This paper investigates how the localization of firms in clusters enhances their resilience in the face of external shocks, using the COVID-19-related disruptions of global value chains (GVCs) as a case study. Our qualitative study of the Alcoi-Ontinyent textile cluster in Spain's Valencian Region shows that the cluster's institutional infrastructure facilitated the reorganization of the cluster's cognitive structure, enabling small and medium-sized enterprises (SMEs) to cope with the shock. Local collective actors aided in leveraging cluster enabling factors to enhance firms' resource position and their reconfiguration, thus supporting firms' dynamic capabilities, and ultimately their resilience. Our study contributes to the literature on clusters and firm resilience by showing that clusters can play a crucial role in SMEs' ability to respond to external shocks and offering insights into how firms can leverage their location in clusters. We also shed light on the importance of institutions, collective actors, and collective actions in creating a competitive advantage for clustered SMEs. [ABSTRACT FROM AUTHOR]

In recent years, 'place-based' interventions have become influential in shaping economic development policy, especially at the European level. From the 2007 to 2013 programming period onwards, EU Cohesion policy, adopted a 'place-based' approach to encourage the competitiveness of all regions. Rather than spatially-blind interventions, the focus is on tackling territorial inequalities via a more sophisticated spatially-sensitive approach to stimulate economic change, at the local level. The challenge is that place-based policies are complex, risky and the performance indicators used to capture the achievements from EU Cohesion policy focus on direct results rather than expected policy change, making it hard to prove effectiveness and value for money. This paper contributes to ongoing academic and policy debates about how to capture the achievements of EU Cohesion policy, through an in-depth case study of 'place-based' interventions made via Interreg funding, to encourage cross-border cooperation between Spain and Portugal. The evidence illustrates that there is a need for novel approaches, which are conceptually informed and spatially sensitive to be able to capture not only the quantitative but also the qualitative achievements generated through EU 'place-based' interventions. [ABSTRACT FROM AUTHOR]

This paper investigates the innovative intensity (iMID effect) in the local production systems (LPSs) using dynamic territorial units that modifies their geographical boundaries and specialization over time. The paper is based on the idea that the local communities are the real unit of generation of innovation and that they are constantly changing, behaving like a 'living innovation machine'. To explore this dynamic relationship, the paper applies the Marshallian industrial district (MID) as an approach to industrial change. Then, it focuses on the Marshallian industrial districts (MIDs) as a type of LPS and asks how the innovation effect changes in MIDs and other types of LPSs when dynamic territorial units are used. The differences in innovation intensity between the different types of LPSs are explained for Spain in the period 1991–2014 using new methods of analysis that combine causal analysis, a variable and adaptive geometry of territorial units and industrial specialization, and machine learning methods. The results show that the transformation of an LPS into another type of LPS does not automatically imply a change in innovative capacity, and the type of LPS of origin continues to be relevant in explaining current innovation processes. [ABSTRACT FROM AUTHOR]