Abstract This paper investigated the spatial effects of innovation and entrepreneurial activity on income inequality 64 middle‐and‐low‐income countries 25 high‐income from 2000 to 2016. Spatial panel methods are used address issues dependency spillover among neighboring countries. We find following: (1) Evidence correlations in across (2) A positive direct effect between but a feedback innovati...

Abstract We analyse how spatial disparities in innovation activities, coupled with migration costs, affect economic geography, market structure, growth and regional inequality. provide conditions for existence uniqueness of a equilibrium, the endogenous emergence industry clusters. Spatial variations knowledge spillovers lead to concentration more innovative firms. Migration however, limit acti...