Empirical analyses of research and development find strong evidence that these activities tend to cluster geographically. Clusters are thought to emerge from the presence of localized positive externalities. This paper presents a model of this clustering behaviour. We find that phase changes in...

Major firms have joined the open-source movement and have chosen to apply that development methodology in their projects. Our model examines the links between openness and innovation in software technologies by revealing how disclosure affects the technical quality of computer applications and...