Economics, Econometrics and Finance
8 years ago

Agglomerations Boost Innovation, But Gains Unevenly Distributed Across Firms

Regional Studies
Agglomerations and firm performance: who benefits and how much?
José-Luis Hervás-Oliver, Francisca Sempere-Ripoll, Ronald Rojas-Alvarado, Sofía Estellés Miguel

Paper Summary

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Agglomerations can help companies perform better. The study looked at how being near other similar businesses affects innovation. They found that being in a cluster of similar businesses can boost a company's innovation. However, not all companies benefit the same way from being in a cluster. Some companies benefit more than others, and the benefits are not evenly distributed.