Recent empirical evidence strongly supports Jacobs's (1969) externality hypothesis that urban diversity provides a more favorable environment for economic development than urban specialization. In order to correctly gauge Jacobs's hypothesis, economic development should be understood as a result...

This paper focuses upon the ways in which characteristics of regions in regards to knowledge sources, communication opportunities, and absorptive capacity influence the development of innovation ideas among existing and potential entrepreneurs. We formulate a model where entrepreneurs or...