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Entrepreneurship, Agglomeration and Technological Change
The authors argue that variations across countries in entrepreneurship and the spatial structure of economic activities could potentially be the source of different efficiencies in knowledge spillovers and ultimately in economic growth. They develop an empirical model to test both the entrepreneurship and the geography effects on knowledge spillovers.
Link
ftp://papers.mpiew-jena.mpg.de/egp/discussionpapers/2004-06.pdf