We estimate the respective importance of spatial sorting and agglomeration economies in explaining the urban wage premium for workers with different sets of skills. Sorting is the main source of the wage premium. Agglomeration economies are in general small, but are larger for workers with...

This paper develops a framework to appreciate the observed heterogeneity of firm size distributions and the entry and exit of products and firms associated with it. It is based on a model where new products are introduced by innovating firms in a quasi-temporal setting of monopolistic...

Firm-level heterogeneity is substantial even in narrowly defined industries. This paper focuses on formulating evolution dynamics which can account for the observed heterogeneity and its maintenance. Based on examination of data on Swedish firm’ supply pattern to different markets over time,...

This paper analyzes how different R&D strategies of incumbent firms affect the quantity and quality of their entrepreneurial spawning. By examining entrepreneurial ventures of ex-employees of firms with different R&D strategies three things emerge: First, firms with persistent R&D investments...

The link between proximity and innovation has been dwelled upon extensively in the literature. A regional economic milieu characterized by proximity between relevant actors is maintained to be suitable for establishing and maintaining successful regional innovation system. In this paper it is...

This paper introduces a model where new products are introduced by entrepreneurs or innovating firms in a quasi-temporal setting. Market conditions are characterized by monopolistic competition between varieties belonging to the same product group, where varieties can become obsolete over time...

Continuous product and process innovations are prerequisites for sustainable competitiveness of both nations and regions. How such innovations are created and how successful innovation processes can be initiated are therefore extremely important questions. In recent years, it has been recognized...

In this paper, we focus on the connections between creativity, social capital and economic performance and growth. Our working hypothesis is that both creativity and social capital influences the economy, both each per se, but also through their influence on each other. We regard creativity as...

The paper focuses on challenges and potentials for policy in the presence of fundamental change processes that influence the long-term evolution of regions. The perspective in the paper implies that policy can be viewed as ‘management of change’. We present a conceptual model for...