Fujita, Masahisa; Thisse, Jacques-François - C.E.P.R. Discussion Papers - 2002
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 …