Companies invest in research and development (R&D) to safeguard their competitive ability and increase productivity. Using extensive company data for Germany, the study shows that manufacturing companies that engage in R&D activities and that are located in a central urban agglomeration are...

Unternehmen investieren in Forschung und Entwicklung (FuE), um ihre Wettbewerbsfähigkeit zu sichern und die Produktivität zu erhöhen. Mit umfangreichen Unternehmensdaten für Deutschland kann hier gezeigt werden, dass forschende Industrieunternehmen in zentralen städtischen...

This paper analyzes the effect of agglomeration economies on firms' total factor productivity. We propose the use of a control function approach to overcome the econometric issue inherent to the two-stage approach commonly used in the literature. Estimations are conducted separately for four...