Abstract
This paper explores the relation between vertical disintegration and the co-localization of knowledge intensive business service (Kibs) firms in the metropolitan region of Milan, using micro-geographic data and nonparametric methods. Our main results are that: (i) compared to other manufacturing and service industries, Kibs firms show a “natural tendency” to cluster; (ii) this tendency increases with the degree of vertical disintegration of Kibs firms.
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