Hirose, Kyoko; Yamamoto, Kazuhiro - Graduate School of Economics, Osaka University - 2005
there are knowledge spillovers that are partially local. Owing to these spillovers, innovation cost in a particular country … decreases as the number of firms locating in both that country and the other country increases. If international knowledge … can absorb the international knowledge spillovers better than a large-market country, the innovation cost may be lower in …