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knowledge spillovers are unmeasurable, a 'goodness of fit' measure is constructed using innovation survey data. It turns out … measures constructed from innovation survey data appear to work reasonably well while measures of the Euclidean technological …
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This paper studies the effect of regional spillovers on the rate of firm formation in two major West German industries for the time period from 1989 to 1993. I exploit regional variations in firm formation at the county level to identify the effects of historically given industry structure and...
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