This paper tests the importance of firm level knowledge and neighborhood diversity, as a source for localized knowledge … points to the importance of absorptive capacity. However, firm characteristics, such as the knowledge of the own employees …

greater when there is related variety in their ‘knowledge base’. We also find that related variety in industries is positive …

.S. economy—one that favors knowledge-based creative activities. …

sense that they have only given a partial picture. One obvious example is that discus¬sions of the role of innovation and … ignored the high degree of innovation and entrepreneurship within many incumbent companies. The purpose of this paper is to … contribute to the meso- and micro-economic literature on innovation and entrepreneurship in the global economy. …