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Productivity and the Density of Local Clusters

In: Innovation Clusters and Interregional Competition

Author

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  • Rui Baptista

    (Catholic University of Portugal
    Indiana University)

Abstract

Several streams of theoretical literature, including regional and urban economics, economic geography and economic growth, explain the geographic concentration of economic activity as the result of increasing returns to scale in production. In one strand of literature, agglomeration results from demand linkages between firms, which are created by the interaction of fixed production costs and transport costs (see, for instance, Krugman 1991). In other, earlier strand of literature, agglomeration economies arise from positive spillovers between firms that share the same locality (Henderson 1974, Lucas 1988). This second stream suggests that if there are spillovers in the accumulation of human capital, a worker will be more productive the greater the agglomeration of educated workers with which he/she shares a given location.

Suggested Citation

  • Rui Baptista, 2003. "Productivity and the Density of Local Clusters," Advances in Spatial Science, in: Johannes Bröcker & Dirk Dohse & Rüdiger Soltwedel (ed.), Innovation Clusters and Interregional Competition, chapter 9, pages 163-181, Springer.
    • Handle: RePEc:spr:adspcp:978-3-540-24760-9_9
    DOI: 10.1007/978-3-540-24760-9_9
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    Cited by:

    1. Xiuyan Liu & Xingmin Yin, 2010. "Spatial externalities and regional income inequality: Evidence from China’s prefecture-level data," Frontiers of Economics in China, Springer;Higher Education Press, vol. 5(2), pages 325-338, June.
    2. Martin Andersson & Johan Klaesson & Johan P. Larsson, 2016. "How Local are Spatial Density Externalities? Neighbourhood Effects in Agglomeration Economies," Regional Studies, Taylor & Francis Journals, vol. 50(6), pages 1082-1095, June.
    3. Eckhardt Bode, 2004. "Agglomeration Externalities in Germany," ERSA conference papers ersa04p120, European Regional Science Association.
    4. Jianyi Li & Douglas Webster & Jianming Cai & Larissa Muller, 2019. "Innovation Clusters Revisited: On Dimensions of Agglomeration, Institution, and Built-Environment," Sustainability, MDPI, vol. 11(12), pages 1-15, June.
    5. Shanzi Ke, 2010. "Agglomeration, productivity, and spatial spillovers across Chinese cities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 45(1), pages 157-179, August.

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