In 1999, the Department of Trade and Industry in London commissioned a literature review of, and commentary on, the productivity paradox in information technology. This paper is derived from that report. The authors find that the discussion of the productivity paradox took place largely in the...

We analyse how spatial disparities in innovation activities, coupled with migration costs, affect economic geography, growth and regional inequality. We provide conditions for existence and uniqueness of a spatial equilibrium, and for the endogenous emergence of industry clusters. Spatial...