Towards a Paradigm of Proximity Economy for Competitive and Resilient Cities and Territories

Luca Tricarico (), Pierre Hausemer, Nessa Gorman and Francesca Squillante
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Luca Tricarico: National Research Council of Italy, Institute on Sustainable Economic Growth (IRCrES), Via dei Taurini 19, 00185 Rome, Italy
Pierre Hausemer: European Institute, London School of Economics and Political Sciences, London WC2A 2AE, UK
Nessa Gorman: Ernst and Young, 1040 Bruxelles, Belgium
Francesca Squillante: Ernst and Young, 1040 Bruxelles, Belgium

Social Sciences, 2025, vol. 14, issue 7, 1-24

Abstract: This paper explores the concept of the Proximity Economy, a human-centered model focused on short value chains and social interactions within local contexts, as a strategic response to global challenges like climate change, supply chain disruptions, and the twin green and digital transitions. Amid ongoing crises, e.g., pandemic, economic, geopolitical, and environmental, reconceptualizing economic development paradigms is crucial for fostering resilient and sustainable solutions. The Proximity Economy integrates local production, distribution, and consumption, supporting sustainable innovation and the competitiveness of local enterprises. It aligns with the European Union’s industrial strategy and Sustainable Development Goals, such as climate action (SDG 13) and reducing inequalities (SDG 10). This paper reviews the socio-economic impacts of the Proximity Economy, considering its connections with the circular and social economies, and identifies relevant policies for its promotion at the European, national, and local levels. Through sectoral analysis and examples, the paper provides a framework for evaluating the economic, environmental, and social outcomes of this model, offering recommendations for its future development and implementation.

Keywords: proximity; regional development; resilience; social innovation; sustainability; cohesion policy (search for similar items in EconPapers)
JEL-codes: A B N P Y80 Z00 (search for similar items in EconPapers)
Date: 2025
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