Which products are potentially produced together? When demand for a product increases,
which firms will supply it? Using multi-product production patterns within and across firms,
we recover a continuous cost based distance between firms and unproduced products.
Higher product distance implies decreasing adoption frequency. When export demand
induces domestic product adoption, closer firms provide this supply. Potential costs imply
measures of Revenue 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%.
