Unites the role that knowledge-creation plays in firm competitiveness with the importance of localized capabilities. The authors begin with the thesis that firms increasingly compete on innovation and generation of entrepreneurial rents than on cost-reduction. Essential to the ability to...

Co-located firms within related industries enhance the ability to create knowledge by variation and a deepened division of labour. The interdependent development between economic activities and local institutions make the cluster attractive to some industries and hostile to others. The very...