The paper analyzes how geographical clustering of beneficiaries might affect the effectiveness of public innovation … facilitate innovation through knowledge spillovers and other localization advantages. Public innovation support programs may …

Skilled labor is a key input to the innovation process. A shortage in supply of skilled labor may hence impede … innovation activities, resulting in lower productivity gains. While governments are concerned about these likely negative impacts …, there is only limited empirical evidence whether and to what extent labor shortage affects innovation activities. The paper …