ABSTRACT
This chapter contributes to the current widespread debate about the role of geographical proximity in economic activity, which poses the question as to whether proximity matters or not for processes of innovation, organizational learning, firm performance and economic development. It is probably fair to say that this debate is far from resolved. In this chapter an alternative perspective is advanced that attempts to shed some light on the conundrum that, despite the strong theoretical arguments for the importance of proximity and the embedding of economic actors within particular regional or local contexts, the empirical evidence is at best equivocal and often unconvincing.
