Nowadays, inter-firm linkages in the form of regional networks are seen as growth-promoting and important prerequisites for successful innovation activities in firms. Beginning with this hypothesis, the paper sets out to answer the question, whether manufacturing businesses with strong intraregional ties are more successful with respect to growth rates and innovative activities than those firms with little connection to their region. From a survey carried out in 10 European regions, the results verify that in spite of numerous network relationships on the national and international level small businesses are most likely to cooperate with others in their vicinity. In addition, the more knowledge-intensive innovation activities of businesses are, the more important is the relevance of spatial proximity in particular and networking in general.
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