The intellectual breakthrough contributed by the new growth theory was the recognition that investments in knowledge … and human capital endogenously generate economic growth through the spillover of knowledge. Endogenous growth theory does … not explain how or why spillovers occur. The missing link is the mechanism converting knowledge into economically relevant …

effect of the composition of economic activity on innovation. We test whether the specialization of economic activity within … a narrow concentrated set of economic activities is more conducive to knowledge spillovers or if diversity, by bringing … together complementary activities, better promotes innovation. The evidence provides considerable support for the diversity …

routinized phase where innovation takes place within top-performing incumbents; (3) a second entrepreneurial phase characterized … routinization, in which no further innovation takes place, but is instead a phase of structural change. Using data on 74 West German …

least as innovative as their larger counterparts poses something of a paradox. Where do small firms get their knowledge … identification of the extent to which spillovers exist between major sources generating new knowledge, such as the R&D laboratories … more important for small-firm innovation than for their larger counterparts. …

comparative advantage of the high-cost countries of North America and Western Europe is increasingly based on knowledge …-driven innovative activity. The spillover of knowledge from the firm or university creating that knowledge to a third-party firm is … essential to innovative activity. Such knowledge spillovers tend to be spatially restricted. Thus, an irony of globalization is …