Specialization and concentration from a twofold geographical perspective: evidence from Europe

This paper investigates European location patterns during a period of economic integration, seeking to identify the distinct roles played by the different geographical levels. The evolution of localization in Europe proved much more complicated empirically than the predictions based on Krugman’s hypothesis. Using Eurostat regional data for the period 1985–2001, the paper shows that while manufacturing employment trickled down among regions, after the completion of the European Single Market a slight agglomeration occurred, but only across national boundaries. National specialization has emerged particularly in the European Union founding Member States. Moreover, there is evidence of an increasing polarization of the North–South divide closely connected with the growing concentration of high-technology sectors.