Globalization and European integration are substantially changing the interregional division of labor in Europe and the industrial specialization of European regions, thereby potentially affecting the extent of disparities between countries and regions. This paper reviews several theoretical...

The comparative advantage of many cities is based on their efficiency in the production of "functions", e.g., business services such as finance, law, engineering, or similar functions that are used by firms in a wide range of sectors. Firms that use these functions may choose to source them...