This paper analyses industrial policy in a high wage open economy hosting an agglomeration consisting of vertically … setting. However the restriction that the agglomeration should be sustained may restrict the otherwise welfare maximising …

of agglomeration effects on growth prospects of firms is less clear. Because of the heterogeneity of industries …, different agglomeration mechanisms, or the way how industrial clusters are identified and spatially delimited, the conclusions … separately. Therefore, for each firm a micro-geographically defined agglomeration measure is calculated, which is free of the …

-geographically defined agglomeration measures, free of the modifiable areal unit problem (MAUP), are used to study 23 industries. The spatial … impacts of agglomeration of related economic and knowledge generating activities are examined by using travel time distances … prospects tend to be hampered by the agglomeration of own-industry employment, but improved by proximate scientific activity …