This discussion paper resulted in a publication in <I>Structural Change and Economic Dynamics</I>, 2013, 24, 141-156.<P> We address the notion of dynamic, endogenous diversity and its role in theories of investment and technological innovation. We develop a formal model of an innovation arising from the...</p></i>

This paper seeks to identify relationships between human capital and cultural capital, in the context of local labour market productivity. The key constituents of human capital, identified in the literature, are jointly examined in a close-to-reality-model. The main advantage of our model of...

Innovation and technological change are central to the quest for regional development. In the globally-connected knowledge-driven economy, the relevance of agglomeration forces that rely on proximity continues to increase, paradoxically despite declining real costs of information, communication...

Portuguese strategic choices regarding innovation and R&D policy have, over the past two decades, produced various positive achievements, in which the regions of Lisbon and Algarve have taken the lead, and are the only ones in the country to converge towards the European average growth rate....

The importance of knowledge spillovers for achieving innovation and economic growth is widely recognized. It is not straightforward which type of spillovers is most effective: intra-sectoral spillovers or inter-sectoral spillovers. We investigate this controversy using a model of regional...

We present a modified open monocentric city model that assumes that land is available for conversion into new housing throughout the city. The model predicts that positive local income shocks (i) increase the city’s share of multi-family housing in new construction and (ii) lead to the...

Policy makers spend large amounts of public resources on the foundation of science parks and other forms of geographically clustered business activities, in order to stimulate regional innovation. Underlying the relation between clusters and innovation is the assumption that co-located firms...

This paper exploits micro firm level data to examine the impact of spatial clustering and links to foreign buyer networks on firm performance in the wood furniture industry in Central Java, Indonesia. The analysis is based on an annual manufacturing survey. We identify the impact of...

The business performance of firms in the creative high-tech sector shows much variation. This paper examines whether the geographical location of such business firms influences the performance of these firms. The overarching analysis framework of this paper emerges from the recently developed...

Concentration of immigrants and its associated externalities have become an important topic in contemporary international migration research, both from a methodological as well as an empirical perspective. The purpose of this paper is twofold. First, it aims to provide an overview of that part...