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Some Aspects of the Effects of the Regional Distribution of Scientific Talent on Regional Economic Activity

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  • Ira Horowitz

    (Indiana University)

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    Abstract

    There is a persistent belief that regional R and D activity will have stimulating effects on the region's economic activity. In order to explore this view further, a multi-equation econometric model is derived to determine the extent to which the spatial distribution of scientific talent is in turn reflected in regional economic activity. The parameters of the model are estimated by the two-stage least-squares method. It is concluded that such economic variables as investment in plant and equipment, employment, and earnings are positively related to the distribution of scientific talent, although these relationships are relatively inelastic. It is also seen that the regional distribution of Department of Defense R and D expenditures tends to be extremely elastic with respect to the regional distribution of scientific talent. It is therefore concluded that concern for the scientific sophistication of a region's population, and the economic implications of this sophistication, is by no means misplaced.

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    File URL: http://dx.doi.org/10.1287/mnsc.13.3.217
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    Bibliographic Info

    Article provided by INFORMS in its journal Management Science.

    Volume (Year): 13 (1966)
    Issue (Month): 3 (November)
    Pages: 217-232

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    Handle: RePEc:inm:ormnsc:v:13:y:1966:i:3:p:217-232

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    Cited by:
    1. Michaela Trippl & Gunther Maier, 2010. "Knowledge spillover agents and regional development," Papers in Regional Science, Wiley Blackwell, vol. 89(2), pages 229-233, 06.
    2. Michaela Trippl, 2009. "Islands of Innovation and Internationally Networked Labor Markets: Magnetic Centers for Star Scientists?," SRE-Disc sre-disc-2009_06, Institute for the Environment and Regional Development, Department of Socioeconomics, Vienna University of Economics and Business.
    3. Maier, Gunther & Kurka, Bernhard & Trippl, Michaela, 2007. "Knowledge Spillover Agents and Regional Development: Spatial Distribution and Mobility of Star Scientists," Papers DYNREG17, Economic and Social Research Institute (ESRI).

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