In this paper, I examine the relationship between increasing returns to scale and the geographic concentration of economic activity. Using data on U.S. counties, I estimate the structural parameters of the Krugman (1991) model of economic geography. The specification I use, which is derived from...

Contents: 1. Introduction: geography, open innovation and entrepreneurship / Urban Gråsjö, Charlie Karlsson and Iréne Bernhard -- 2. Innovation intermediaries as a response to system failures: creating the right incentives / Margherita Russo, Annalisa Caloffi, Federica Rossi and Riccardo...

Where economic activity will locate in the future is one of the most important and challenging questions in economics. Even though advances in technology have reduced the cost of transport and communication which has curtailed the "distance penalty" for business operations, local proximity of...