IDEAS home Printed from https://ideas.repec.org/a/rre/publsh/v32y2002i2p187-206.html
   My bibliography  Save this article

Asymmetric Knowledge Spillovers in a Model of Regional Innovation and Growth

Author

Listed:
  • Sedgley, Norman

    (Loyola College)

Abstract

This paper formulates a theoretical model to investigate the determinants of the rate of innovation across economies that differ in important ways in industrial structure and face the possibility of asymmetric knowledge spillovers between industries. In particular, I wish to extend the model of expanding product variety in order to study the implications of a highly diversified sectoral composition across regional industrial bases on rates of economic innovation. A global knowledge spillover has long been recognized as a possible explanation for the absence of scale effects. What has not been appreciated is the unstable nature of the equilibrium associated with this explanation. The model can, therefore, be used to understand how, in a dynamic setting, certain regions, such as Silicon Valley or the high-tech corridor stretching along Route 28 from northern Massachusetts into southern New Hampshire, become centers of innovative activity while other regions' industries fade in importance. These results suggest a strong role for regional economics in interpreting the results of new growth theory.

Suggested Citation

  • Sedgley, Norman, 2002. "Asymmetric Knowledge Spillovers in a Model of Regional Innovation and Growth," The Review of Regional Studies, Southern Regional Science Association, vol. 32(2), pages 187-206, Summer/Fa.
    • Handle: RePEc:rre:publsh:v:32:y:2002:i:2:p:187-206
    as

    Download full text from publisher

    File URL: http://journal.srsa.org/ojs/index.php/RRS/article/view/32.2.3/pdf
    File Function: To View On Journal Page
    Download Restriction: no
    File URL: http://journal.srsa.org/ojs/index.php/RRS/article/download/32.2.3/268
    File Function: To Download Article
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    2. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-251, April.
      • Barro, R.J. & Sala-I-Martin, X., 1991. "Convergence," Papers 645, Yale - Economic Growth Center.
      • Barro, Robert J. & Sala-i-Martin, Xavier, 1992. "Convergence," Scholarly Articles 3451299, Harvard University Department of Economics.
    3. Jaffe, Adam B, 1986. "Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits, and Market Value," American Economic Review, American Economic Association, vol. 76(5), pages 984-1001, December.
    4. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1993. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," The Quarterly Journal of Economics, Oxford University Press, vol. 108(3), pages 577-598.
    5. repec:hoo:wpaper:e-95-4 is not listed on IDEAS
    6. Tom Lee & Louis L. Wilde, 1980. "Market Structure and Innovation: A Reformulation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 94(2), pages 429-436.
    7. Robert J. Barro & Xavier Sala-i-Martin, 1991. "Convergence across States and Regions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 107-182.
    8. Glenn C. Loury, 1979. "Market Structure and Innovation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 93(3), pages 395-410.
    9. Zucker, Lynne G & Darby, Michael R & Armstrong, Jeff, 1998. "Geographically Localized Knowledge: Spillovers or Markets?," Economic Inquiry, Western Economic Association International, vol. 36(1), pages 65-86, January.
    10. Romer, Paul M, 1987. "Growth Based on Increasing Returns Due to Specialization," American Economic Review, American Economic Association, vol. 77(2), pages 56-62, May.
    11. Glaeser, Edward L. & Scheinkman, JoseA. & Shleifer, Andrei, 1995. "Economic growth in a cross-section of cities," Journal of Monetary Economics, Elsevier, vol. 36(1), pages 117-143, August.
    12. Dosi, Giovanni, 1988. "Sources, Procedures, and Microeconomic Effects of Innovation," Journal of Economic Literature, American Economic Association, vol. 26(3), pages 1120-1171, September.
    13. Bernstein, Jeffrey I & Nadiri, M Ishaq, 1988. "Interindustry R&D Spillovers, Rates of Return, and Production in High-Tech Industries," American Economic Review, American Economic Association, vol. 78(2), pages 429-434, May.
    14. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-596, September.
    15. Bresnahan, Timothy F, 1986. "Measuring the Spillovers from Technical Advance: Mainframe Computers inFinancial Services," American Economic Review, American Economic Association, vol. 76(4), pages 742-755, September.
    16. G Cameron, 1996. "Innovation and Economic Growth," CEP Discussion Papers dp0277, Centre for Economic Performance, LSE.
    17. Adams, James D, 1990. "Fundamental Stocks of Knowledge and Productivity Growth," Journal of Political Economy, University of Chicago Press, vol. 98(4), pages 673-702, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Norman Sedgley & Bruce Elmslie, 2004. "The Geographic Concentration of Knowledge: Scale, Agglomeration, and Congestion in Innovation Across U.S. States," International Regional Science Review, , vol. 27(2), pages 111-137, April.
    2. Kaiser, Ulrich, 2002. "Measuring knowledge spillovers in manufacturing and services: an empirical assessment of alternative approaches," Research Policy, Elsevier, vol. 31(1), pages 125-144, January.
    3. Jun Koo & Tae‐Eun Kim, 2009. "When R&D matters for regional growth: A tripod approach," Papers in Regional Science, Wiley Blackwell, vol. 88(4), pages 825-840, November.
    4. Franco Malerba & Maria Mancusi & Fabio Montobbio, 2013. "Innovation, international R&D spillovers and the sectoral heterogeneity of knowledge flows," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(4), pages 697-722, December.
    5. Michele Cincera, 2005. "Firms' productivity growth and R&D spillovers: An analysis of alternative technological proximity measures," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(8), pages 657-682.
    6. Karine Pellier, 2007. "Convergence, Patenting Activity and Geographic Spillovers: A Spatial Econometric Analysis for European Regions," Working Papers 07-14, LAMETA, Universtiy of Montpellier, revised Dec 2007.
    7. Harhoff, Dietmar, 1991. "R&D incentives and spillovers in a two-industry model," ZEW Discussion Papers 91-06, ZEW - Leibniz Centre for European Economic Research.
    8. Norman Sedgley & Bruce Elmslie, 2011. "Do We Still Need Cities? Evidence on Rates of Innovation from Count Data Models of Metropolitan Statistical Area Patents," American Journal of Economics and Sociology, Wiley Blackwell, vol. 70(1), pages 86-108, January.
    9. Capolupo, Rosa, 2009. "The New Growth Theories and Their Empirics after Twenty Years," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 3, pages 1-72.
    10. Leibowicz, Benjamin D., 2018. "Welfare improvement windows for innovation policy," Research Policy, Elsevier, vol. 47(2), pages 390-398.
    11. Timothy C. Ford & Jonathan C. Rork & Bruce T. Elmslie, 2008. "Foreign Direct Investment, Economic Growth, and the Human Capital Threshold: Evidence from US States," Review of International Economics, Wiley Blackwell, vol. 16(1), pages 96-113, February.
    12. Benjamin Montmartin & Ludovic Dibiaggio & Lionel Nesta, 2018. "Regional Alignment and Productivity Growth," SciencePo Working papers Main halshs-01948337, HAL.
    13. Aldieri, Luigi & Aprile, Maria Carmela & Vinci, Concetto Paolo, 2015. "R&D Spillovers Effects on strategic behaviour of Large International Firms," MPRA Paper 63402, University Library of Munich, Germany.
    14. Thomas Doring & Jan Schnellenbach, 2006. "What do we know about geographical knowledge spillovers and regional growth?: A survey of the literature," Regional Studies, Taylor & Francis Journals, vol. 40(3), pages 375-395.
    15. Richard C. Levin & Peter C. Reiss, 1989. "Cost-Reducing and Demand-Creating R&D With Spillovers," NBER Working Papers 2876, National Bureau of Economic Research, Inc.
    16. Maurseth, Per Botolf, 2001. "Convergence, geography and technology," Structural Change and Economic Dynamics, Elsevier, vol. 12(3), pages 247-276, September.
    17. Ford, Timothy C. & Rork, Jonathan C., 2010. "Why buy what you can get for free? The effect of foreign direct investment on state patent rates," Journal of Urban Economics, Elsevier, vol. 68(1), pages 72-81, July.
    18. Dennys Eduardo Rossetto & Roberto Carlos Bernardes & Felipe Mendes Borini & Cristiane Chaves Gattaz, 2018. "Structure and evolution of innovation research in the last 60 years: review and future trends in the field of business through the citations and co-citations analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 115(3), pages 1329-1363, June.
    19. Bart Verspagen, 2010. "The spatial hierarchy of technological change and economic development in Europe," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 45(1), pages 109-132, August.
    20. Lee, Chang-Yang, 2009. "Competition favors the prepared firm: Firms' R&D responses to competitive market pressure," Research Policy, Elsevier, vol. 38(5), pages 861-870, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rre:publsh:v:32:y:2002:i:2:p:187-206. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tammy Leonard & Lei Zhang (email available below). General contact details of provider: http://www.srsa.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.