On the Changing Nature of Industrial Production: Implications for a Research Agenda in Aeronautics Industrial Policy

The geography of industrial production is continuously shifting towards the most cost effective locations, being particularly associated with increasing uncertainty. This paper presents a contextual analysis of industrial production dynamics leading to a policy research agenda. In particular, we use unbalanced panel data on 173 European regions, during 1999–2007, to examine whether knowledge, human capital and innovation capability help to explain the role of manufacturing on regional development. A number of regulatory, institutional and policy issues affect the analysis.