Michel Serafinelli, 17 October 2017

The productivity benefits of similar firms locating near one another are well accepted, but there is little agreement on how knowledge spillovers have local effects. This column presents evidence from Italy of how firm-to-firm labour mobility enhances the productivity of firms located near other, highly productive firms. The main finding is that the recruitment of workers with experience at good firms significantly increases the productivity of the firms hiring them.

Hiroyasu Inoue, Kentaro Nakajima, Yukiko Saito, 11 February 2015

Despite vast improvements in information and communications technology, the tendency of firms in related industries to cluster together hardly changed between 1985 and 2005. This column examines the relationship between geographic clustering and innovation using establishment-level data from Japan. Research establishments – especially those in high-technology industries – are more localised than average. The degree of localisation is greater when establishments are weighted by their creativity, as measured by the number of patents created and the number of citations received.

Sharon Belenzon, 03 July 2012

According to the received wisdom, innovation is the heart-and-soul of modern growth but incentives to innovate are prone to the free-rider problem. This column partly supports that view. Looking at over 1,000 US companies it shows that internal citations of a firm's patents have a positive effect on market value while external citations have a negative effect.

Rachel Griffith, John Van Reenen, Sokbae Lee, 07 September 2007

New empirical research on patent citations shows that when it comes to the flow of new ideas, distance is now dying. But for many sectors, especially in the more traditional and mature technologies, it is not yet dead; spatial agglomeration of R&D still makes sense.

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