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Estimates of the Impact of Static and Dynamic Knowledge Spillovers on Regional Factor Productivity

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Author Info

  • James P. LeSage

    (Department of Finance and Economics, McCoy College of Business Administration, Texas State University, San Marcos, TX, USA)

  • Manfred M. Fischer

    ()
    (Department of SocioEconomics, Institute for Economic Geography and GIScience, Vienna University of Economics and Business, Vienna, Austria)

Abstract

The authors develop an empirical approach to examine static and dynamic knowledge externalities in the context of a regional total factor productivity (TFP) relationship. Static externalities refer to current period scale or industry-size effects that have been labeled localization externalities or region-size effects known as agglomeration externalities. Dynamic externalities refer to the relationship between accumulated or prior period knowledge and current levels of innovation, where past learning-by-doing makes innovation positively related to cumulative production over time. The empirical specification allows for the presence of both static and dynamic externalities and provides a way to assess the relative magnitude of spillovers associated with spillovers from these two types of knowledge externalities. The magnitude of own-region impacts and other-region (spillovers) can be assessed using scalar summary measures of the own- and cross-partial derivatives from the model. The authors find evidence supporting the presence of dynamic externalities as well as static, and the estimates suggest that dynamic externalities may have a larger magnitude of impact than static externalities.

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File URL: http://irx.sagepub.com/content/35/1/103.abstract
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Bibliographic Info

Article provided by in its journal International Regional Science Review.

Volume (Year): 35 (2012)
Issue (Month): 1 (January)
Pages: 103-127

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Handle: RePEc:sae:inrsre:v:35:y:2012:i:1:p:103-127

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Related research

Keywords: total factor productivity; knowledge spillovers; technological proximity; spatial Durbin model; European regions;

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References

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  1. Rachel Griffith & Rupert Harrison & John Van Reenen, 2004. "How Special is the Special Relationship? Using the Impact of US R&D Spillovers on UK Firms as a Test of Technology Sourcing," CEP Discussion Papers dp0659, Centre for Economic Performance, LSE.
  2. Rachel Griffith & Stephen Redding & John Van Reenen, 2000. "Mapping the Two Faces of R&D: Productivity Growth in a Panel of OECD Industries," CEP Discussion Papers dp0458, Centre for Economic Performance, LSE.
  3. Cem Ertur & Wilfried Koch, 2005. "Growth, Technological Interdependence and Spatial Externalities - Theory and Evidence," ERSA conference papers ersa05p651, European Regional Science Association.
  4. Corinne Autant‐Bernard & James P. LeSage, 2011. "Quantifying Knowledge Spillovers Using Spatial Econometric Models," Journal of Regional Science, Wiley Blackwell, vol. 51(3), pages 471-496, 08.
  5. Corinne Autant-Bernard, 2001. "The Geography Of Knowledge Spillovers And Technological Proximity," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 10(4), pages 237-254.
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Cited by:
  1. R. Paci & E. Marrocu, 2012. "Knowledge assets and regional performance," Working Paper CRENoS 201213, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.

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