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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. Marcus Berliant & Masahisa Fujita, 2004. "Knowledge Creation as a Square Dance on the Hilbert Cube," KIER Working Papers, Kyoto University, Institute of Economic Research 580, Kyoto University, Institute of Economic Research.
  2. Marcus Berliant & Robert R. Reed III & Ping Wang, 2000. "Knowledge Exchange, Matching, and Agglomeration," Econometric Society World Congress 2000 Contributed Papers, Econometric Society 0261, Econometric Society.
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Cited by:
  1. Pierpaolo Parrotta & Dario Pozzoli & Mariola Pytlikova, 2011. "The Nexus between Labor Diversity and Firm's Innovation," Norface Discussion Paper Series, Norface Research Programme on Migration, Department of Economics, University College London 2011005, Norface Research Programme on Migration, Department of Economics, University College London.
  2. Tavassoli, Sam & Carbonara , Nunzia, 2013. "The Role of Knowledge Variety and Intensity for Regional Innovative Capability," CIRCLE Electronic Working Papers, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy 2013/34, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  3. Max Nathan, 2013. "Top Team Demographics, Innovation And Business Performance: Findings From English Firms And Cities, 2008-9," ERSA conference papers ersa13p69, European Regional Science Association.
  4. Berliant, Marcus & Yu, Chia-Ming, 2009. "Locational signaling and agglomeration," MPRA Paper 24799, University Library of Munich, Germany.
  5. Sam Tavassoli & Nunzia Carbonara, 2013. "The Role of Knowledge Variety and Intensity for Regional Innovative Capability - Swedish evidence," Papers in Evolutionary Economic Geography (PEEG), Utrecht University, Section of Economic Geography 1317, Utrecht University, Section of Economic Geography, revised Oct 2013.
  6. Berliant, Marcus & Fujita, Masahisa, 2012. "Culture and diversity in knowledge creation," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 42(4), pages 648-662.
  7. Neil Lee & Max Nathan, 2011. "Does Cultural Diversity Help Innovation in Cities: Evidence from London Firms," SERC Discussion Papers, Spatial Economics Research Centre, LSE 0069, Spatial Economics Research Centre, LSE.
  8. Max Nathan, 2011. "Ethnic Inventors, Diversity and Innovation in the UK: Evidence from Patents Microdata," SERC Discussion Papers, Spatial Economics Research Centre, LSE 0092, Spatial Economics Research Centre, LSE.
  9. Ryusuke Ihara, 2011. "Agglomeration with the pros and cons of labor heterogeneity," ERSA conference papers ersa11p528, European Regional Science Association.
  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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