The paper presents a simple extension of the Barabasi-Albert model of network evolution. This model is based upon the assumption that new links are formed not only according to the centrality of other nodes in a network but geodetic distance is also important in link formation. Simulation results show that if link formation is based on distance then the resulting network is more clustered than in the case of centrality being the dominant factor in link formation. Our empirical results show that in European regional patent inventor networks distance is a considerably more important factor in link formation than network centrality.