Industrial subcontracting, outcontracting and networking between firms has generated a lot of attention in the field of research. This attention is quite understandable because it reflects a number of important developments in the international restructuring of the economy. However, not all aspects of industrial networking have been given equal attention. Most research deals with the description and explanation of the marketing and organisational aspects of networking - financial and technical - for the firms involved. In contrast to this, very little attention is paid to the spatial and cultural aspects of industrial networking. In this study a combination of both fields of interest is made in which organisational as well as cultural, spatial and also policy aspects of industrial networking are included. The study is built up in two parts. In the first part, consisting of chapter 1 through 4, the infuence of physical distance on the ’birth’ and functioning of subcontracting-outcontractingand network-relations is the central topic. In the second part, consisting of chapter 5 through 9, not only physical distance, but also other influencing factors like trust, regional culture and personal background of decision makers are dealt with. In this way, a broad overview of factors influencing industrial relations is obtained which can help to understand the spatial organisation of these relations.