Firms in Bigger Regions Thrive, Boosting Local Economies
The study looked at whether being near lots of other businesses improves how productive a company is. They used data about manufacturing firms in Sweden from 1997 to 2004. The big takeaways are: bigger regions can lead to more productivity for firms; being around other businesses can help companies learn and grow; and the advantages of being close to other businesses don't depend on how big the firm is.