Economy of proximity and externality

The study carried out on the wilaya of Bejaia (Algeria) allowed us to note that the co-location of the companies located in the industrial zones does not make it possible to promote a dynamics based on the inter-firms coordinations. The organizational and institutional proximity remains inactive in this case the industrial dynamics does not refer a relational dynamics between the companies in geographical proximity. The grouping and the bringing together of its companies around industrial zones is not founded on the idea to build networks and interactions but by a geographical proximity motivated by the advantages of the zone. Because this geographical proximity facilitates the dynamics of coordination and direct interactions through face to face relations. The local development project is a collective approach and as such it requires the synergy of all local actors (elected officials institutions businesses citizens associations etc.). The activation of the organizational and institutional proximity between the actors depends on this to benefit from technological externalities.