We develop a model of a city populated by heterogeneous agents. Agents self-select into entrepreneurship, and entrepreneurs set up firms which hire workers. We characterize the equilibrium matching between firms and workers, as well as the within-city assignment of agents to locations. We then...

This paper examines how the geographical proximity of university-industry linkages relates to the quality of an institution?s research, local efforts in research and development (R&D), and characteristics of a region?s production structure. The important role of universities for the firms?...