Knowledge exchange, innovation policy, and international trade flows are key aspects of the knowledge-based economy. In her introduction to the special issue on The Knowledge-Based Society: Transition, Geography, and Competition Policy the author briefly reviews these aspects. She begins with...

Entrepreneurs face higher commercialization costs than incumbents. We show that this implies that entrepreneurs will choose more risky projects than incumbents, aiming to reduce their high expected marginal commercialization cost. However, entrepreneurs may select too safe projects from a social...

This chapter reviews academic research on the connections between agglomeration and innovation. We first describe the conceptual distinctions between invention and innovation. We then describe how these factors are frequently measured in the data and some resulting empirical regularities....

Knowledge exchange, innovation policy, and international trade flows are key aspects of the knowledge-based economy. In her introduction to the special issue on The Knowledge-Based Society: Transition, Geography, and Competition Policy the author briefly reviews these aspects. She begins with...

The paper presents an empirical analysis of the innovative activities of business groups in Latin America. It compares the innovativeness of group-affiliated firms (GAFs) and standalone firms (SAFs), and it investigates how country-specific institutional factors – financial, legal, and labor...

This chapter offers a theory and method for the analysis of the dynamics, i.e. the development, of clusters for innovation. It employs an analysis of three types of embedding: institutional embedding, which is often localized, structural embedding (network structure), and relational embedding...

A research joint venture (RJV) faces a serious free-rider problem because its participants¡¯ contributions are mostly unobservable. We first present a model that shows that a RJV solves this problem by pre-committing to its termination date. Our analysis shows that there is an optimal...

This article provides empirical tests of the hypothesis of ‘optimal cognitive distance’, proposed by Nooteboom (1999, 2000), in two distinct empirical settings. Variety of cognition, needed for learning, has two dimensions: the number of agents with different cognition, and differences in...

This chapter reviews the empirical literature on the determination of firms’ and industries’ innovative activity and performance, highlighting the questions addressed, the approaches adopted, impediments to progress in the field, and research opportunities. We review the...

The reform of corporate governance is again on the agenda in the wake of Enron and excessive risk-taking by financial institutions. However, the search for new and better forms of governance often seems to lack guiding principles. A theory of corporate governance ought to emerge from a theory of...