Firms in Science Parks Lag Behind Urban Counterparts in Productivity
The research looked at how where companies are located affects how productive they are in Taiwan. They studied firms in science parks and big cities. When firms gather in the same place (agglomeration), their productivity can change. Firms in science parks had lower productivity than those in big cities. This happened because competition made some firms not very productive (left truncation). Overall, being in a place where there are many businesses can help firms become more productive.