Agglomeration and product innovation in China

Hongyong Zhang, 21 July 2014



Spatial agglomeration of economic activities is generally assumed to improve productivity and spur firms’ innovation through localisation economies and urbanisation economies.1 There is an extensive empirical literature investigating the effects of localisation and urbanisation on firm-level productivity.

Topics: Productivity and Innovation
Tags: agglomeration, China, clusters, innovation, productivity, R&D, spatial concentration, subsidies

Caution to place makers: Greater firm density does not always promote incumbent firm health

William Kerr, Oliver Falck, Christina Günther, Stephan Heblich, 11 February 2013



A common theme in economic geography is that increasing returns to scale at the local level are essential for explaining the geographical distribution of economic activity. These agglomerative forces are often cited as a rationale for policy intervention to attract new firms to areas.

Topics: Industrial organisation
Tags: agglomeration, clusters, East Germany, Germany

Is the new economic geography passé?

Marius Brülhart, 7 January 2009



In his Nobel Prize lecture on December 8, Paul Krugman argued that his core-periphery model of economic geography is in some sense becoming obsolete.

Topics: Development, Productivity and Innovation
Tags: agglomeration, clusters, economic geography, urbanisation

Natural clusters: Why policies promoting agglomeration are unnecessary

Philippe Martin, Thierry Mayer, Florian Mayneris, 4 July 2008



Policymakers love to promote industrial clusters. Since the end of the 1980s, national and local governments in Germany, Brazil, Japan, South Korea, Spanish Basque country, and France, inter alia, have attempted to foster their development.

Topics: Microeconomic regulation, Productivity and Innovation
Tags: agglomeration, clusters, localisation economies

Spatial concentration and firm-level productivity in France

Philippe Martin, Thierry Mayer, Florian Mayneris, 16 June 2008

The analysis of agglomeration economies focuses around two separate important questions: how large the gains from agglomeration are and how much firms internalize these gains when deciding where to locate.

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Topics: Productivity and Innovation
Tags: clusters, localization economies, productivity, spatial concentration

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