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Regional Specialization and Technical Leapfrogging

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  • Mary Amiti

Abstract

This paper investigates circumstances where a region loses its technological leadership after some major technological breakthrough. Input‐output linkages between firms in a Cournot upstream industry and a perfectly competitive downstream industry create forces for agglomeration in particular locations, driving up prices of immobile factors. A new technology that is incompatible with the old will not benefit from these linkages and so is more likely to be established in locations with little existing industry due to lower factor prices. Furthermore, in some circumstances the old and new technologies may coexist.

Suggested Citation

  • Mary Amiti, 2001. "Regional Specialization and Technical Leapfrogging," Journal of Regional Science, Wiley Blackwell, vol. 41(1), pages 149-172, February.
    • Handle: RePEc:bla:jregsc:v:41:y:2001:i:1:p:149-172
    DOI: 10.1111/0022-4146.00211
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    Cited by:

    1. Ning, Lutao & Wang, Fan & Li, Jian, 2016. "Urban innovation, regional externalities of foreign direct investment and industrial agglomeration: Evidence from Chinese cities," Research Policy, Elsevier, vol. 45(4), pages 830-843.

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