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Innovation in Cities: Science-Based Diversity, Specialization and Localized Competition

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Author Info
Audretsch, David B
Feldman, Maryann P

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Abstract

Whether diversity or specialization of economic activity better promotes technological change and subsequent economic growth has been the subject of a heated debate in the economics literature. The purpose of this paper is to consider the effect of the composition of economic activity on innovation. We test whether the specialization of economic activity within a narrow concentrated set of economic activities is more conducive to knowledge spillovers or if diversity, by bringing together complementary activities, better promotes innovation. The evidence provides considerable support for the diversity thesis but little support for the specialization thesis.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1980.

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Date of creation: Sep 1998
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Handle: RePEc:cpr:ceprdp:1980

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Related research
Keywords: Agglomeration Economic Development Geography Growth Innovation Spillovers

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Find related papers by JEL classification:
O1 - Economic Development, Technological Change, and Growth - - Economic Development
O3 - Economic Development, Technological Change, and Growth - - Technological Change

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