The present research examines the differential impact of the importance of internally and externally sourced information and knowledge and its relationship to absorptive capacity and firm performance. In addition, this analysis deals directly with the unobservable heterogeneity amongst firms...

In this paper, we investigate how changes in the skill mix of local labor supply are absorbed by the economy. We distinguish between three adjustment mechanisms: through factor prices, through an expansion in the size of those production units that use the more abundant skill group more...