Clusters, unlike diamonds, are not forever: the European way to global competition

The Chapter develops an analysis of European productivity jointly with the role of innovation, broadly considered, as an answer to the challenges of global competition. Specific assets (soft innovation and manufacturing capabilities), which Europe is endowed with, ask for a new place-based policy and a suitable declination is to enhance competitiveness of clusters (also) in low– medium–tech sectors and strongly connect them with Islands of Innovation (the frontier of innovation research and patenting activity). Europe – within a multi-level governance frame – surely represents the most appropriate layer for designing, implementing, and monitoring such new place-based policies.