Industry Concentration, Knowledge Diffusion and Economic Growth Without Scale Effects
研究了产业地理分布与经济增长的关系，发现产业集中度通过影响知识溢出和市场进入，对经济增长率产生不确定影响。
This paper studies the relationship between geographic patterns of industry and economic growth without scale effects. Facing transport costs and imperfect knowledge diffusion, firms locate production, process innovation and product development in their lowest cost regions, leading to the partial concentration of production and full agglomeration of innovation in the region with the largest market. An increase in industry concentration raises knowledge spillovers from production to innovation, causing a fall (rise) in market entry, if labour productivity improves more for process innovation (product development). The rate of economic growth rises or falls, depending on how industry concentration affects market entry.