Innovation processes are characterized by a pronounced division of labor between actors. Two types of externality may arise from such interactions. On the one hand, a close location of actors affiliated to the same industry may stimulate innovation (MAR externalities). On the other hand, new ideas may be born by the exchange of heterogeneous and complementary knowledge between actors, which bel...

Abstract Innovation is often seen as a crucial factor for regional economic growth. Many strands of literature have investigated the role agglomeration externalities or workers’ skills in innovation capacity territory without ever considering their interaction. Using fixed-effects Poisson regression models on official data 2014–2019 Italian regions, this paper aims twofold. First, by controllin...

Urban production externalities (agglomeration effects) are external effects among producers in areas with a high density of economic activity. Such external effects are the main explanation for why productivity is usually highest in those areas of a country where economic activity is densest. There is some disagreement about the strength of urban production externalities. What is clear however ...

The issue of whether firm productivity is affected by agglomeration externalities a longstanding area research. However, the appropriate geographical level to better detect effects economies and at which these work still unclear. Using detailed firm-level longitudinal data on 4927 manufacturing firms in United Kingdom over period 2008–2016, we investigate relation between microgeography externa...

Unlike policy makers‟ belief that geographical proximity to incumbent exporters encourages non-exporters to start exporting through positive information externalities, the empirical evidence in early studies is mixed. To make a contribution to fill the gap, this paper reexamines the relationship between the spatial and industrial agglomeration of exporting firms and the probability of being an ...

This paper aims to analyze and depict urban equilibrium from the perspective of a complex force field between (positive) agglomeration economies and (negative) environmental externalities. Based on a simplified representation of a linear urban economy, an archetypical model based on general equilibrium principles is designed and its properties are investigated by using numerical simulations. Th...

This paper studies how firm heterogeneity in terms of productivity affects the balance between agglomeration and dispersion forces in the presence of pecuniary externalities through a selection model of monopolistic competition with variable mark-ups. It shows that firm heterogeneity matters. However, whether it shifts the balance from agglomeration to dispersion or the other way round depends ...