endogenous growth. We develop a model where quality of each good improves as a result of innovation. Once the innovator develops … intensity of innovation goes up. We then consider the growth implications of the model and show that in the steady state the … to the rate of innovation …

and the welfare of rich and poor consumers. The analysis is based on a product-variety model with non …

We analyse how spatial disparities in innovation activities, coupled with migration costs, affect economic geography … endogenous emergence of industry clusters. Spatial variations in knowledge spillovers lead to spatial concentration of more …. Narrowing the gap in knowledge spillovers across regions raises growth, and reduces regional inequality by making firms more …