I provide novel empirical evidence grounded in an original theoretical framework to explain why co-location matters for the rate, direction and quality of scientific collaboration. To address endogeneity concerns due to selection into co-location and matching, I exploit the constraints imposed...

During the last 20 years, R&D and innovation activities in the service sector have clearly increased. Especially business services are believed to be one of the main drivers of technical changes and economic progress. Looking at the labour indices calculated over the period from 1982 to 1996 one...