Fosfuri, Andrea; Rønde, Thomas - Centre for Industrial Economics (CIE), Økonomisk Institut - 2003
We analyze firms’ incentives to cluster in an industrial district to benefit from reciprocal technology spillovers. A … simple model of cumulative innovation is presented where technology spillovers arise endogenously through labor mobility. It … in some extreme cases, beneficial for firms’ profits, stimulates clustering, and is not an impediment to technology …