Contradictory empirical and theoretical evidence on the relationship between innovation and competition has been reconciled in a model that yields an inverted U-shaped curve. I test whether the predictions of the model are supported by the data with an unbalanced panel of firms for 1990–2003...

Agglomeration economies are sought with stochastic frontier methodology to analyse their role in the extraordinary productivity growth of the knowledge-intensive information and communication technology (ICT) equipment industry in Finland. Results suggest that the method, though imprecise, is...