This paper sheds light on the questions, Why does knowledge spill over? and How does knowledge spill over? The answer to these questions we suggest lies in the incentives confronting scientists to appropriate the expected value of their knowledge considered in the context of their path-dependent...

We examine how industrial clustering affects biotechnology firms’ innovativeness, contrasting similar firms not located in clusters or located in clusters that are or are not focused on the firm’s technological specialization. Using detailed firm level data, we find clustered firms are eight...

Biotechnology firms operate in a high-risk and high-reward environment and are in a constant race to secure venture capital (VC) funds. Previous contributions to the literature show that the VC firms tend to invest locally in order to monitor their investments and to provide operating assistance...