AGGLOMERATION, NETWORKS & INSTITUTIONAL SUPPORT IN THE INNOVATIVE EUROPEAN AEROSPACE INDUSTRY

Abstract

This article examines the interrelated role of agglomeration, networks and institutional advantages in shaping the competitive dynamics of the European aerospace industry. The interaction of agglomerations, formal and informal networks, and public and private institutions creates the foundation for innovative development, high efficiency and competitiveness of the European aerospace industry. The aim of the article is to analyze such interactions and identify ways to ensure sustainable competitive advantages of enterprises and the industry as a whole in the process of timely response to challenges from the external environment. The aerospace industry is characterized by technological intensity, complex value chains and strong cooperation between the public and private sectors, which provides a unique context for analyzing how spatial concentration, formal and informal networks, collaborative ties and institutional frameworks jointly promote innovation and competitiveness. These principles completely correspond with ESG conception which provides European values.   Agglomeration is reflected in aerospace clusters such as Toulouse, Hamburg and Turin, where knowledge sharing, research and development, pools of skilled labour, integration links and proximity to suppliers increase the efficiency of companies and the innovation level of the industry. Networks, both formal and informal, allow companies to manage supply chains, access additional opportunities and integrate into global systems, while institutional advantages resulting from EU policies, national strategies and specialized public and private institutions provide regulatory stability and financing. At the same time, aerospace companies constantly face serious challenges that may affect their sustainable development. The article notes intense global competition, the need to find alternative energy sources, geopolitical risks, the shortage of skilled labour and large-scale investment, and cyber security risks.

Using configurational analysis, the authors highlight how these three dimensions – agglomeration, networks and institutional support – interact to respond to challenges and create the cumulative advantages that underpin Europe's leadership in aerospace.