Recent empirical studies find vast industry differences in how patent protection influences innovation and growth. An optimization of aggregate growth, therefore, implies the need for a flexible patent regime responding to each industry's characteristics. In practice, sector-specific...

This volume was prepared by Sebastian Benz while he was working at the Ifo Institute. It was completed in December 2013 and accepted as a doctoral thesis by the Department of Economics at the University of Munich. It includes five self-contained chapters. All chapters discuss different...

This paper presents a theoretical model on firms' patenting decision in vertically differentiated markets. The model's prediction regarding patenting and rival's market entry decision are then tested empirically. We find that in industries which are characterized by easy-to-use knowledge...

The literature on trust, control and knowledge creation in seems to be moving towards a consensus. Trust is necessary to create an open atmosphere for knowledge creation while control acts as a safeguard against malfeasance. Networks that neglect either one often create less knowledge, such as...

The aim of this study is to clarify what factors affect the innovation activity of small and medium-sized enterprises (SMEs), and especially the effect of regional factors. Innovations are seen as central phenomena on both micro and macro levels in economy. However, we know little about the...

The purpose of this paper is to analyse the effect of various proximity dimensions on the innovative capacity of 276 regions in Europe within a knowledge production function model, where R&D and human capital are included as the main internal inputs. We combine the standard geographical...

High levels of net migration to the UK have contributed to growing cultural diversity, and researchers are turning their attention to the long-term effects of diversity on productivity. Yet little is known about these issues. This paper asks: what are the links between the composition of firms'...

This paper introduces cultural gravity as a new concept for analyzing socio-economic disparities among immigrants. It tests the existence of cultural gravity effects on the geographic concentration and human capital productivity of immigrants. Using cultural distance as a proxy for the local...

This paper assesses the extent to which cooperation impacts innovation performance of firms in rural regions characterized by a solid economic performance despite a low-technology industrial structure. Particular emphasis is placed on the spatial and functional dimension of cooperation. Generic...

?Knowledge economy? as a concept describes a stage of socio-economic development, when knowledge become a major growth factor. In modern economy, it can be associated with processes of knowledge acquiring, creation and dissemination; its main agents are educational, scientific organizations and...