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The Dynamics of Knowledge Diversity and Economic Growth

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  • Marcus Berliant

    ()
    (Department of Economics, Washington University, Campus Box 1208, 1 Brookings Drive, St. Louis, MO 63130-4899, USA)

  • Masahisa Fujita

    ()
    (Konan University, 8-9-1 Okamoto, Higashinada-ku, Kobe, 658-8501 Japan)

Abstract

How is long run economic growth related to the endogenous diversity of knowledge? We formulate and study a microeconomic model of knowledge creation, through the interactions among a group of heterogeneous research and development (R&D) workers, embedded in a growth model to address this question. The composition of the research work force in terms of knowledge heterogeneity, in addition to its size, matters in determining the production of new knowledge. Moreover, the heterogeneity of the work force is endogenous. Income to these workers accrues as patent income, whereas transmission of newly created knowledge to all such workers occurs due to public transmission of patent information. Whether or not the system reaches the most productive state depends on the strength of the public knowledge transmission technology. Long run economic growth is positively related to both the effectiveness of pairwise R&D worker interaction and to the effectiveness of public knowledge transmission.

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Bibliographic Info

Article provided by Southern Economic Association in its journal Southern Economic Journal.

Volume (Year): 77 (2011)
Issue (Month): 4 (April)
Pages: 856-884

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Handle: RePEc:sej:ancoec:v:77:4:y:2011:p:856-884

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  1. Michele Boldrin & David K Levine, 2008. "Against Intellectual Monopoly," Levine's Bibliography 122247000000002371, UCLA Department of Economics.
  2. Marcus Berliant & Robert R. Reed III & Ping Wang, 2000. "Knowledge Exchange, Matching, and Agglomeration," Vanderbilt University Department of Economics Working Papers 0033, Vanderbilt University Department of Economics.
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  7. Marcus Berliant & Masahisa Fujita, 2004. "Knowledge Creation as a Square Dance on the Hilbert Cube," KIER Working Papers 580, Kyoto University, Institute of Economic Research.
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Citations

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Cited by:
  1. Marcus BERLIANT & FUJITA Masahisa, 2011. "Culture and Diversity in Knowledge Creation," Discussion papers 11046, Research Institute of Economy, Trade and Industry (RIETI).
  2. Parrotta, Pierpaolo & Pozzoli, Dario & Pytlikova, Mariola, 2010. "The Nexus between Labor Diversity and Firm´s Innovation," Working Papers 10-15, University of Aarhus, Aarhus School of Business, Department of Economics.
  3. Neil Lee & Max Nathan, 2011. "Does cultural diversity help innovation in cities: evidence from London firms," LSE Research Online Documents on Economics 33579, London School of Economics and Political Science, LSE Library.
  4. Berliant, Marcus & Yu, Chia-Ming, 2009. "Locational signaling and agglomeration," MPRA Paper 24799, University Library of Munich, Germany.
  5. Max Nathan, 2013. "Top Team Demographics, Innovation and Business Performance: Findings from English Firms and Cities 2008-9," SERC Discussion Papers 0129, Spatial Economics Research Centre, LSE.
  6. Ryusuke Ihara, 2011. "Agglomeration with the pros and cons of labor heterogeneity," ERSA conference papers ersa11p528, European Regional Science Association.
  7. Max Nathan, 2011. "Ethnic Inventors, Diversity and Innovation in the UK: Evidence from Patents Microdata," SERC Discussion Papers 0092, Spatial Economics Research Centre, LSE.
  8. Tavassoli, Sam & Carbonara, Nunzia, 2013. "The Role of Knowledge Variety and Intensity for Regional Innovative Capability," CITR Working Paper Series 2013/01, Center for Innovation and Technology Research, Blekinge Institute of Technology.
  9. Sam Tavassoli & Nunzia Carbonara, 2013. "The Role of Knowledge Variety and Intensity for Regional Innovative Capability - Swedish evidence," Papers in Evolutionary Economic Geography (PEEG) 1317, Utrecht University, Section of Economic Geography, revised Oct 2013.
  10. Florian Noseleit & Rene Söllner, 2011. "Diversity of human capital and regional growth," ERSA conference papers ersa10p245, European Regional Science Association.

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