The presence of localized industrial aggregation, also from the viewpoint of regional and country growth theories, can be regarded as a potential competitive advantage for regions or nations. While there is an abundance of qualitative analysis of the clustering of single industries and the way...

Using firm-level based TFP indicators (as opposed to employment-based proxies) we estimate the effects of alternative sources of dynamic externalities at the local level. In contrast to previous empirical work, we find that industrial specialization and scale indicators affect TFP growth...