Basevi, Giorgio; Ottaviano, Gianmarco I.P. - In: Journal of Regional Science 42 (2002) 1, pp. 107-126
We depict an industrial district as a center of innovation where positive local spillovers sustain the endogenous invention of new goods by profit-seeking firms. After invention, firms face a crucial choice between reaching distant markets by export or plant delocation. Attempts by firms to...