Contents: Setting The Stage: Proximity, external relations, and local economic development, Arnoud Lagendijk and Päivi Oinas. 'Localization': Clusters, Industrial Districts, And All That - Evidence and Qualifications: Cultural industry cluster building in Sweden, Dominic Power and Daniel Hallencreutz; Industrial districts in a transitional economy: the case of Datang Sock and stocking industry in Zhejiang, China, Jici Wang, Huasheng Zhu and Xin Tong; Ethnic entrepreneurship and embeddedness: the case of lower Galilee, Michael Sofer and Izhak Schnell; Networking and project organization in the Styrian automotive industry, Franz Tödtling and Michaela Trippl. Establishing External Relations: the Search for Specialized or Diverse Competences?: Supplier search in industrial clusters: Sheffield metal working in the 1990s, H. Doug Watts, Andrew M. Wood and Perry Wardle; Regional clusters building on local and non-local relationships: a European comparison, Arne Isaksen; The evolution of regional packaging machinery clusters in Germany, Ivo MoÃYig; Glob@lizing the network economy: local advantage for high-technology development, Wen-Cheng Wang; Collaboration, innovation and regional networks: evidence from the medical biotechnology industry of Greater Vancouver, Kevin Rees. Economic Interaction On Multiple Scales: The process of innovation in contrasting industrial environments, Asbjørn Karlsen and Bjarne Lindeløv; Globalization and the dynamics of local embeddedness in the South Hampshire electronics industry, Michael Taylor; Mobility versus embeddedness: the role of proximity in major capital projects, Neil Alderman; Variety of enterprise adaptation strategies in the emerging post-Socialist governance in Vyborg, Riitta Kosonen. Adding Value: Towards understanding proximity, distance and diversity in economic interaction and local development, Päivi Oinas and Arnoud Lagendijk; Index.