JOHN MORROW

Which products are potentially produced together? Can any firm eventually supply any new demand? Using multi-product production costs within and across firms, we recover a continuous cost based distance between products and firms. Product distance implies a product adoption path, with distance decreasing adoption frequency. When export demand induces domestic product adoption, closer firms provide this supply. Counterfactual production costs imply measures of Revenue Potential and Competition Potential. These predict firm sales growth, scope growth and core focus. If all firms produced all products linked by co-production, consumer welfare would increase by 10-30%.