Urban expansion in the coastal zone of Greece: Temporal changes, climate risks and the role of spatial planning

Abstract

Traditional theories that examine the relationship between agglomeration and competitiveness are based on the natural advantages of a region and external economies of scale. However, modern literature, especially with the development of the knowledge economy, shifts the focus toward the impact of local knowledge, knowledge diffusion, and collective learning. In this context, knowledge is recognized as a fundamental source of economic growth, while learning is considered a process that enhances the ability to acquire and generate new knowledge. The central argument of recent literature is that competitiveness in the global economy now relies on local patterns of knowledge production and exchange, as well as innovative learning processes.In recent decades, special emphasis has been placed on the concept of business clusters, which hold a central position in contemporary theoretical and empirical discussions on regional development. The literature highlights the need for a new model of regional development focused on the production, circulation, and utilization of knowledge, especially under the conditions of globalization and increased competitive pressures. Policymakers, as they strive to strengthen their regions against rising global competition, seek strategies that will encourage innovation and enhance competitiveness through knowledge creation and learning.One of the central assumptions of the literature concerns the importance of geographical proximity. This proximity facilitates knowledge diffusion and enhances collective learning within spatially concentrated businesses, such as clusters. However, geographical proximity alone is not considered a sufficient condition for promoting innovation. Instead, the literature argues that other forms of proximity—social, cultural, institutional—must also be considered, as they contribute to the enhancement of knowledge creation and transfer, as well as learning, within agglomeration. The article provides a detailed examination of how various dimensions of proximity affect knowledge, learning, and innovation, focusing on the case of business clusters.In this way, the literature review highlights the importance of local factors in promoting economic growth through knowledge, learning and agglomeration.