This paper examines the effects of specialisation (within-sector clustering) and diversity (between-sector clustering … clusters of business services firms. A standard deviation increase in business services specialisation leads to on average a 40 …, not necessarily business services firms, so diversity is negatively related to location decisions. Almost all firms either …

The importance of knowledge spillovers for achieving innovation and economic growth is widely recognized. It is not … this controversy using a model of regional growth. The model also deals with the impact of local competition on innovation … competition is important particularly for economic growth in industry sectors (manufacturing and construction), while diversity, a …

> Knowledge triggers regional growth. Evidence suggests that skilled labour force concentrates in islands of innovation … increasing returns to knowledge, favouring the emergence of islands of innovation; regions with a high endowment of cognitive …

This paper enters the debate on the islands of innovation through the lens of the standard Lucas (1988) growth model … of recent EU innovation and education policies. Our results point to the paramount importance of taking into account … patterns of connectivity between “islands” of innovation and other regions. On the basis of our empirical estimates, we claim …

innovation) and the benefits associated with returns to scale. We derive conditions for optimal diversity under different regimes …> 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 combination of two existing modules with the objective to …

willingness to pay for mixed land use. For example, apartment occupiers are willing to pay almost 25 percent more for diversity …