This paper studies the industry-specific relationship between industrial clustering and firm growth. The literature usually considers industrial clusters as positive for the general economic development of regions. In particular, their relationship with the formation rate of new firms and the...

This paper explores the impact of industrial clusters on regional growth at level of German labour market regions within a regional convergence model. It focuses on vertically connected industrial sectors, which can emerge parallel to horizontal interconnections. Based on works of Schnabl (2000)...