Modern (endogenous) growth theory tells us that knowledge is crucial for the sustained growth of high-income economies. Against this background, the paper provides a survey of theoretical and empirical findings highlighting the question of how geographically limited knowledge diffusion can help...

1 Introduction and Motivation -- 2 Why and How Does Economic Activity Grow? An Overview of the Literature -- 3 Why and How Does Economic Activity Concentrate in Space? Another Overview of the Literature -- 4 Spatial Knowledge Spillovers and the Dynamics of Agglomeration and Regional Growth -- 5...