two regions, the decrease of these costs fosters the gradual agglomeration of plants in the core region accommodating the …

analysis suggests that the presence of such a sector reinforces the tendency toward agglomeration, and supports the idea that … the additional growth spurred by agglomeration may lead to a Pareto-dominant outcome such that when the economy moves from … dispersion to agglomeration, innovation follows a much faster pace. As a consequence, even those who stay put in the periphery …