The model explains the emergence of asymmetric productive structures among regions based on adoption of a quality improving technology. Firms' products are differentiated both in location and quality, location is given. We characterize symmetric and asymmetric equilibria of the two stage game in...

We show evidence of local spillover effects in corporate innovation productivity. Specifically, we find that firms’ patent counts and patent citations are positively related to the innovation output of other local firms, including those firms in different industries. We rule out exogenous...