Ajay Agrawal, Iain Cockburn, Alberto Galasso, Alexander Oettl, 23 December 2013

Many regions struggle to attract innovation activity. This column discusses new evidence suggesting that there is no universal ‘best’ policy. Policies focused exclusively on attracting ‘anchor tenants’ or cultivating new ventures may not be as effective as those promoting a mix of large and small firms. Regions with large firms but few young entrepreneurial firms may benefit from policies that cultivate new ventures, while those without large firms may benefit most from policies that attract some.

CEPR Policy Research