Empirical analyses show that the employment effects of start-ups are highest in agglomerations, whereas moderately congested areas exhibit only modest effects, and weak or even no significant effects could be found in rural regions. This paper will set out to show that these discrepancies arise...

The aim of this paper is to test how geographical and technological proximity relate to a particular industry’s innovative output. Two mechanisms are therefore tested, i.e. agglomeration economies and the regional exploitation of technological proximity. A new dataset is applied, which...

Cluster studies have shown that innovation can be understood as the result of an inter- organizational process, where a division of labor with regard to exploration and exploitation exists among the actors inside the cluster. A cluster is ambidextrous if it manages to balance innovative...

Popular theories claim that innovation activities should be located in large cities because of more favorable environmental conditions that are absent in smaller cities or remote and rural areas. Germany provides a clear counterexample to such theories. We argue that a main force behind the...