publication . Article . Research . Preprint . Book . 2014

Localised knowledge spillovers and agglomeration

Leppälä, Samuli; Cardiff University;
Open Access English
  • Published: 01 Jul 2014
  • Publisher: Springer
  • Country: United Kingdom
Abstract
Empirical evidence shows that innovation is geographically concentrated,\ud but whether localised knowledge spillovers provide a logically\ud valid explanation for this phenomenon is unclear. I show that in the\ud context of cost-reducing R&D spillovers between Cournot oligopolists\ud the explanation is plausible: localised knowledge spillovers encourage\ud agglomeration, but whether this leads to higher levels of effective R&D\ud depends on the extent of the spillovers, the number of farms, and the\ud industry's R&D effciency. Contrary to the earlier theoretical work,this illustrates a context, in which the localised knowledge spillover\ud explanation is actual...
Subjects
free text keywords: O33, R32, L13, knowledge spillovers, agglomeration economies, innovation, location, knowledge spillovers; agglomeration economies; innovation; location, ddc:330, Geography, Planning and Development, Environmental Science (miscellaneous), Empirical evidence, Industrial organization, Economics, Cournot competition, Economies of agglomeration, Economic geography, jel:O33, jel:R32, jel:L13, HB
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