Although it is widely recognized that changes in technology and competition have diminished many of the traditional roles of location, this study argues for a prominent role of clusters, or geographic concentrations of interconnected companies, specialized suppliers, service providers, and...

We study the effects of import competition on industry locations patterns in a small open economy with two regions. Domestic productivity growth converges to the international rate through firm-level investment in process innovation. With firms locating production and innovation in their lowest...

Krugman's verdict that competitiveness of countries is a largely meaningless concept is a serious misjudgement of the economics profession. Countries compete for the mobile factors of production, most importantly for capital and technology. The exit-option of these factors and of firms changes...

Contributed to and edited by leading international academics, this book analyzes 'new economic geography' research, and examines the ensuing policy implications as well as core-periphery patterns, transportation costs and economic modelling