Localisation can be described as organising business or industry in local areas rather than nationally. It is a type of external economy of scale that translates into productivity gains for companies that are located close to each other. Such productivity-enhancing externalities arisefrom input sharing, a common labour market, knowledge spillovers, and high-quality infrastructure.
The aim of the next workshop of the Competitiveness Research Network (CompNet) at the European Bank for Reconstruction and Development (EBRD) is to dig deeper into localisation economies and associated productivity gains.
The increasing availability of new cross-border databases at the firm level, e.g. the CompNet database, and of micro-level databases at the firm and individual levels creates the opportunity to analyse localisation economies in novel settings.
The workshop will include presentations that address the links and relationships between localisation, innovation, and productivity. Are companies more likely to innovate or adopt industry-best management practices in localised economies? Do innovation spillovers occur through mobility of inventors and managers, or does local product market competition play a bigger role? Should policy focus on horizontal policies such as the quality of infrastructure that affects all firms similarly, or is there room for more targeted policy-making?