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This chapter reviews academic research on the connections between agglomeration and innovation. We first describe the conceptual distinctions between invention and innovation. We then describe how these factors are frequently measured in the data and some resulting empirical regularities....
Persistent link: https://www.econbiz.de/10010885295
In markets where spatial competition is important, many models predict that average prices are lower in denser markets (i.e., those with more producers per unit area). Homogeneous-producer models attribute this effect solely to lower optimal markups. However, when producers instead differ in...
Persistent link: https://www.econbiz.de/10005079152
Despite the fact that importing and exporting are extremely rare firm activities, economists generally devote little attention to the role of firms when discussing international trade. This paper summarizes key differences between trading and non-trading firms, demonstrates how these differences...
Persistent link: https://www.econbiz.de/10005085327
It is well known that new businesses are typically much smaller than their established industry competitors, and that this size gap closes slowly. We show that even in commodity-like product markets, these patterns do not reflect productivity gaps, but rather differences in demand-side...
Persistent link: https://www.econbiz.de/10009493264
simplest form of pay for performance, the piece rate, has been in decline in manufacturing in recent decades. We show both … theoretically and empirically that these changes are due to adoption of "modern manufacturing" in which firms produce a greater … in two companies that adopted modern manufacturing methods and changed their method of compensation from piece rates to …
Persistent link: https://www.econbiz.de/10008727844
manufacturing startups across cities and industries. Demographics have limited explanatory power. Overall levels of local customers … city and industry fixed effects explain between sixty and eighty percent of manufacturing entry. We use spatial …
Persistent link: https://www.econbiz.de/10005714042
To what extent are firms kept out of a market by patents covering related technologies? Do patents held by potential entrants make it easier to enter markets? We estimate the empirical relationship between market entry and patents for 27 narrowly defined categories of software products during...
Persistent link: https://www.econbiz.de/10005720371
Recent theoretical work predicts that an important margin of adjustment to deregulation or trade reforms is the reallocation of output within firms through changes in their product mix. Empirical work has accordingly shifted its focus towards multi-product firms and their product mix decisions....
Persistent link: https://www.econbiz.de/10005829412
U.S. v. Microsoft and the related state suit filed in 1998 appear finally to have concluded. In a unanimous en banc decision issued in late June 2004, the D.C. Circuit Court of Appeals rejected challenges to the remedies approved by the District Court in November 2002. The wave of follow-on...
Persistent link: https://www.econbiz.de/10005774828
Employment growth is strongly predicted by smaller average establishment size, both across cities and across industries within cities, but there is little consensus on why this relationship exists. Traditional economic explanations emphasize factors that reduce entry costs or raise...
Persistent link: https://www.econbiz.de/10008548787