Being a "jack-of-all-trades" increases the probability of running an entrepreneurial venture successfully; but what happens to "jack-of-few-trades" who lack sufficient skills? This paper investigates a possible compensation mechanism between balanced skills and cities, and how this compensatory...

Innovation processes are characterized by a pronounced division of labor between actors. Two types of externality may arise from such interactions. On the one hand, a close location of actors affiliated to the same industry may stimulate innovation (MAR externalities). On the other hand, new...

Literature suggests that location should matter for R&D activities. However, attempts to empirically detect differences in innovation activity between regions have so far been rather unsuccessful. Using a unique data set which contains comparable information about manufacturing enterprises in...

Literature suggests that location should matter for R&D activities. However, attempts to empirically detect differences in innovation activity between regions have so far been rather unsuccessful. Using a unique data set which contains comparable information about manufacturing enterprises in...

Popular theories claim that innovation activities should be located in large cities because of more favorable environmental conditions that are absent in smaller cities or remote and rural areas. Germany provides a clear counterexample to such theories. We argue that a main force behind the...