The aim of this paper is to extend the theoretical literature on knowledge and network structure by considering explicitly the choice to use the social network as a learning mechanism. In the model, we consider a set of actors that creates and diffuses knowledge. They are located on a lattice...

This paper examines whether location in strong industrial clusters translates into a higher probability of innovating. A firm-level analysis of the UK and Italy is performed. Innovative activities of firms (European patent data for 1988-98) are related to regional employment, other...

A well-grounded empirical and theoretical literature shows that local production systems can benefit from external economies generated by a shared ‘industrial atmosphere’. Many scholars would agree that in contexts as industrial districts, clusters and local systems, economic actions are...

The idea that innovation leads to positive economic performance has become a sort of truism in recent years. However, empirical evidence showing that innovating organizations and countries outperform non-innovating ones remains scant and scattered. In many ways, the jury is still out. First of...

The analysis of innovation and the evolution of industries evolution has witnessed major progress in several areas. Contributions at the empirical, appreciative, econometric and modelling levels have greater advanced our understanding of innovation, industrial dynamics and the different...

Knowledge-intensive activities are bound by imperfections that limit the provision of incentives, particularly asymmetric information about inputs and unclear definition of outputs. Thus, performance-based incentives are not possible. We then model a contract in which the firm can use the...