Evidence abounds that agglomeration patterns have changed over time, but little is known about changes in the underlying determinants of agglomeration. We analyze 44 years coagglomeration U.S. manufacturing industries and show input-output linkages labor market pooling become less important industry agglomeration, while knowledge spillovers more important. trade technology shocks are strongly a...

In this paper we analyse productivity spillovers from foreign direct investment using firm level panel data UK manufacturing industries from 1992 to 1999. We investigate spillovers through horizontal, backward and forward linkages, distinguish spillovers from export oriented vs domestic market oriented FDI, and allow for differing effects depending on domestic firms’ export activities. The resu...

Knowledge spillovers occur when a firm researches new technology and that is adapted or adopted by another firm, resulting in social value of the larger than initially predicted private value. As result, firms systematically under-invest research compared with socially optimal investment strategy. Understanding level under-investment, as well policies to correct it, an area active economic rese...

a r t i c l e i n f o JEL classifications: L26 O14 O16 O31 O33 O34 Keywords: Knowledge spillovers R&D intensity Entrepreneurship Intellectual property rights Copyright Legal formalism Knowledge spillovers are widely thought to be important for innovative activity, yet theory is ambiguous about the sign of the relationship. Assuming that knowledge spillovers are more easily exploited where intel...

This paper examines whether UK firms that locate their R&D activity in the USA benefit more than other UK firms from knowledge spillovers originating from US R&D. Patent data provides a firm-level measure of the location of innovative activity, which enables the identification of knowledge spillovers associated with "technology sourcing". Our identification strategy helps to address various pro...

For many real-world markets (such as media, telecommunications, high tech markets, commercial aircrafts, etc.), incurring endogenous sunk costs (in the form of quality enhancing expenditures), in the presence of R&D spillovers, is an essential feature of competition. We study the interaction between these sunk costs and R&D spillovers relying on the Sutton’s concept of endogenous sunk costs and...

Purpose – After identifying two kinds of internal knowledge transfer strategies, the purpose of this paper is to examine their effectiveness and whether they induce knowledge spillovers among firms. Design/methodology/approach – This study collected data in China and 219 questionnaires were achieved. Then, structure equation model by LISREL was used for hypotheses testing. Findings – The empiri...

This is the first national study of fiscal spillovers between local governments and the first to examine whether fiscal spillovers vary based on the form of democracy used to determine tax rates. There is an extensive theoretical literature concerning fiscal spillovers between local governments, but it is challenging to empirically distinguish spillovers from common underlying trends. Using a n...