externalities appear along the lifecycle. In a simple model, we show that it may be efficient to subsidize innovative firms in their … early stages or to protect mature firms from competition to appropriate these externalities. However, non …-benevolent politicians may not choose efficient policies. Real-world examples indicate that politicians tend to concentrate on externalities …

This paper provides evidence that the effect of agglomeration externalities on survival is moderated by the start …-up's innovative behavior. It is shown that localization externalities are prevalent particularly in non-high-tech environments and …

externalities appear along the lifecycle. In a simple model, we show that it may be efficient to subsidize innovative firms in their … early stages or to protect mature firms from competition to appropriate these externalities. However, non …-benevolent politicians may not choose efficient policies. Real-world examples indicate that politicians tend to concentrate on externalities …

The paper provides novel empirical evidence about the effects of spatial externalities on the survival of innovative … robust to the modifiable areal unit problem. Estimates of spatial externalities are obtained through survival regression … and strength of agglomeration externalities depend on the firm's life cycle. In particular, an interesting stylized fact …