The article explores the role of proximity and collaborative networks in shaping smart specialization strategies for regional development. The study introduces a mathematical model for proximity contagion, which considers population, gross value added, and distance between localities to quantify the influence of proximity on smart specialization. The article discusses experimental insights from applying the model to the North-Western region of Romania, highlighting the dynamic interplay between local strengths, collaborative networks, and proximity influences. The findings underscore the need for adaptive strategies and supportive policies to leverage proximity advantages effectively and enhance innovation-driven economic growth at the regional level.