Horii, Ryo - In: Journal of Economic Dynamics and Control 36 (2012) 2, pp. 220-238
satisfy an indefinite range of wants and firms' incentive to utilize knowledge from past production experiences. We show that … firms endogenously form a number of distinguishable industries as accumulated knowledge induces them to agglomerate in the … technology space. Knowledge accumulation in existing industries reduces production costs, but, as the diminishing returns from …