We argue that in this age of globalization, important R&D-in automobiles and wireless telecommunication-exhibits a decisive home bias. This contrasts with findings on the rate and extent of globalization of the aggregate of activities classified as R&D. Sorting out R&D was deemed important at...

Michael Porter's cluster theory became popular at both the academic and policy levels as well as received a series of critiques. This article provides a synthetic view of those critiques. In addition, it reveals two new fundamental limitations of the theory. First, the descriptive and static...