International Knowledge and Innovation Networks. Knowledge Creation and Innovation in Medium-technology Clusters, di Cappellin R., Wink R., (2009). Cheltenham: Edward Elgar. 288 pages. ISBN 978-1-84844-441-6

The characteristics and processes of knowledge creation and transmission in regions, districts and clusters have long attracted economists, regional scientists and, more recently, innovation scholars. Since the classical works by Alfred Marshall and, later on in the ‘50s of the XX century, by Meade and Scitovsky on external economies, and by Perroux on growth poles, the literature emphasized the idea that firms agglomerating in geographic space benefited from external economies, and knowledge spillovers in particular, and grew faster than isolated firms. After these early contributions, analysis in this field developed on the claim that geographical proximity can be a major driver of technological progress and economic growth because favors different forms of contacts and knowledge sharing between co-located firms and organizations. The book written by Riccardo Cappellin and Rüdiger Wink can be placed within this tradition of studies, which contributes to enrich and augment in various ways. First of all, the book provides a new, micro-analytic as well as empirically-based theoretical understanding of the dynamics of knowledge creation and innovation in clusters. Moreover, and more specifically, it focuses on the innovation strategies that European SMEs in medium-technology sectors can implement in order to react to the global competitive pressure. Finally, it articulates an innovation policy framework to support the formation of knowledge networks and clusters at the European level.