The stringy instanton partition function

We perform an exact computation of the gauged linear sigma model associated to a D1-D5 brane system on a resolved A(1) singularity. This is accomplished via supersymmetric localization on the blown-up two-sphere. We show that in the blow-down limit C-2/Z(2) the partition function reduces to the Nekrasov partition function evaluating the equivariant volume of the instanton moduli space. For finite radius we obtain a tower of world-sheet instanton corrections, that we identify with the equivariant Gromov-Witten invariants of the ADHM moduli space. We show that these corrections can be encoded in a deformation of the Seiberg-Witten prepotential. From the mathematical viewpoint, the D1-D5 system under study displays a twofold nature: the D1-branes viewpoint captures the equivariant quantum cohomology of the ADHM instanton moduli space in the Givental formalism, and the D5-branes viewpoint is related to higher rank equivariant Donaldson-Thomas invariants of P-1 x C-2.