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Agglomeration and Innovation

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  • Carlino, Gerald
  • Kerr, William R.

Abstract

This chapter reviews academic research on the connections between agglomeration and innovation. We first describe the conceptual distinctions between invention and innovation. We then discuss how these factors are frequently measured in the data and note some resulting empirical regularities. Innovative activity tends to be more concentrated than industrial activity, and we discuss important findings from the literature about why this is so. We highlight the traits of cities (e.g., size and industrial diversity) that theoretical and empirical work links to innovation, and we discuss factors that help sustain these features (e.g., the localization of entrepreneurial finance).

Suggested Citation

  • Carlino, Gerald & Kerr, William R., 2015. "Agglomeration and Innovation," Handbook of Regional and Urban Economics, Elsevier.
  • Handle: RePEc:eee:regchp:5-349
    DOI: 10.1016/B978-0-444-59517-1.00006-4
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    Cited by:

    1. Ramana Nanda & William R. Kerr, 2015. "Financing Innovation," Annual Review of Financial Economics, Annual Reviews, vol. 7(1), pages 445-462, December.
    2. Combes, Pierre-Philippe & Gobillon, Laurent, 2015. "The Empirics of Agglomeration Economies," Handbook of Regional and Urban Economics, Elsevier.
    3. Crescenzi, Riccardo & Jaax, Alexander, 2017. "Innovation in Russia: the territorial dimension," LSE Research Online Documents on Economics 66948, London School of Economics and Political Science, LSE Library.
    4. repec:eee:juecon:v:101:y:2017:i:c:p:27-44 is not listed on IDEAS
    5. Bosquet, Clément & Combes, Pierre-Philippe, 2017. "Sorting and agglomeration economies in French economics departments," Journal of Urban Economics, Elsevier, vol. 101(C), pages 27-44.
    6. John V. Winters, 2017. "Do Native STEM Graduates Increase Innovation? Evidence from U.S. Metropolitan Areas," Economics Working Paper Series 1714, Oklahoma State University, Department of Economics and Legal Studies in Business.
    7. Riccardo Crescenzi & Alexander Jaax, 2015. "Innovation in Russia: the territorial dimension," Papers in Evolutionary Economic Geography (PEEG) 1509, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Apr 2015.
    8. Neumark, David & Simpson, Helen, 2015. "Place-Based Policies," Handbook of Regional and Urban Economics, Elsevier.
    9. Fritsch, Michael & Changoluisa, Javier, 2017. "New business formation and the productivity of manufacturing incumbents: Effects and mechanisms," Journal of Business Venturing, Elsevier, vol. 32(3), pages 237-259.
    10. repec:eee:deveco:v:127:y:2017:i:c:p:133-152 is not listed on IDEAS
    11. Bosquet, Clément & Combes, Pierre-Philippe, 2017. "Sorting and agglomeration economies in French economics departments," Journal of Urban Economics, Elsevier, vol. 101(C), pages 27-44.
    12. MURATA, Yasusada & NAKAJIMA, Ryo & TAMURA, Ryuichi, 2016. "Testing for localization: A new approach," IIR Working Paper 16-11, Institute of Innovation Research, Hitotsubashi University.
    13. Combes, Pierre-Philippe & Gobillon, Laurent, 2015. "The Empirics of Agglomeration Economies," Handbook of Regional and Urban Economics, Elsevier.
    14. Desmet, Klaus & Henderson, J. Vernon, 2015. "The Geography of Development Within Countries," Handbook of Regional and Urban Economics, Elsevier.
    15. Balázs Páger & Éva Komlósi, 2015. "Agglomeration effects on countries' competitiveness and entrepreneurial performance," ERSA conference papers ersa15p503, European Regional Science Association.
    16. Madalina Maticiuc & Alexandru Constantin Petrache, 2015. "The Influence Of Logistics Over The Occurrence Of Spatial Agglomeration Of Businesses," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 2, pages 252-256, April.
    17. Winters, John V., 2014. "Foreign and Native-Born STEM Graduates and Innovation Intensity in the United States," IZA Discussion Papers 8575, Institute for the Study of Labor (IZA).
    18. Goldman, Benjamin & Klier, Thomas H. & Walstrum, Thomas, 2016. "Evidence on the Within-Industry Agglomeration of R&D, Production, and Administrative Occupations," Working Paper Series WP-2016-20, Federal Reserve Bank of Chicago.
    19. repec:bof:bofrdp:urn:nbn:fi:bof-201512141480 is not listed on IDEAS
    20. Mikaela Backman & Hans Lööf, 2015. "The geography of innovation and entrepreneurship," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 55(1), pages 1-6, October.
    21. repec:eee:juecon:v:101:y:2017:i:c:p:14-26 is not listed on IDEAS

    More about this item

    Keywords

    Agglomeration; Clusters; Innovation; Invention; Entrepreneurship; J2; J6; L1; L2; L6; O3; R1; R3;

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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