Effets de complémentarité externes et incidence sur la productivité : le cas de l'industrie manufacturière luxembourgeoise ; Technological Spillovers and Productivity with an application to Luxembourg’s Manufacturing Industry

This article seeks to measure knowledge spillovers between nearby industries. This represents one of types of externality identified in the studies of industry location. A spillover indicator is suggested which can explain increasing returns at the aggregate level. It is shown that this indicator is positively related to industry diversity. As applied to data from Luxembourg’s manufacturing industry, this indicator suggests that labor productivity is increasing in industry diversity.