Clusters are groups of specialised enterprises - often SMEs - and supporting actors, such as public authorities, universities, technology centres, vocational and training institutions, and more, which cooperate closely in a particular location. Cluster organisations are legal entities that...

Clusters are groups of specialised enterprises - often SMEs - and supporting actors, such as public authorities, universities, technology centres, vocational and training institutions, and more, which cooperate closely in a particular location. Cluster organisations are legal entities that...

We consider a linear panel data model with nonseparable two-way unobserved heterogeneity corresponding to a linear version of the model studied in Bonhomme et al. (2022). We show that inference is possible in this setting using a straightforward two-step estimation procedure inspired by existing...