THE WAYS OF IMPROVING AND STRENGTHEN INNOVATION POTENTIALS OF COMPANIES AND INSTITUTIONS USING CLUSTERS: EUROPEAN EXPERIENCE

Abstract

This article examines the combined influence of agglomeration economies, collaborative networks, and institutional support on innovation and competitiveness within the European aerospace industry. Using a configurational perspective, it explores how the interaction of these factors contributes to the development of resilient and innovative aerospace ecosystems. The analysis focuses on leading European aerospace clusters, including Toulouse, Hamburg, Turin, and Seville, with Airbus SE serving as the principal case study. The study argues that geographical agglomeration creates significant competitive advantages by fostering specialized labour markets, facilitating knowledge spillovers, strengthening supplier relationships, and improving access to shared infrastructure. It further demonstrates that collaboration among firms, universities, research institutions, and public organizations accelerates technological innovation through knowledge exchange, joint research, and risk-sharing. Institutional support provided by the European Union, national governments, and regional cluster organizations reinforces these advantages by promoting research and development, reducing investment uncertainty, and encouraging long-term industrial cooperation. The article also highlights the growing importance of organizational culture, digital transformation, sustainability, and cross-sector collaboration as key drivers of future competitiveness. The findings indicate that the long-term success of the European aerospace industry depends on the complementary interaction of agglomeration economies, collaborative networks, and effective institutional governance rather than on individual organizational capabilities alone. The study contributes to the literature on regional innovation systems while providing practical recommendations for policymakers and industry stakeholders seeking to strengthen Europe's global leadership in aerospace innovation.