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Digital technologies, knowledge spillovers, innovation policies, and economic growth in a creative region

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  • Amitrajeet A. Batabyal
  • Peter Nijkamp

Abstract

We theoretically study the impact of two innovation policies on economic growth in a region that is creative in the sense of Richard Florida and that uses digital technologies to produce a final consumption good. The use of these digital technologies in our creative region gives rise to incomplete knowledge spillovers. Our analysis generates three salient findings. First, we characterize the balanced growth path (BGP) equilibrium. Second, we solve the social planner's problem, describe the Pareto optimal allocation of resources, and then compare the Pareto optimal allocation with the BGP equilibrium allocation. Finally, we study the impacts that a research subsidy and a particular patent policy have on economic growth in our creative region and then we relate our findings to the incompleteness of the above-mentioned knowledge spillovers.

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  • Amitrajeet A. Batabyal & Peter Nijkamp, 2016. "Digital technologies, knowledge spillovers, innovation policies, and economic growth in a creative region," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 25(5), pages 470-484, July.
    • Handle: RePEc:taf:ecinnt:v:25:y:2016:i:5:p:470-484
    DOI: 10.1080/10438599.2015.1073485
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    Cited by:

    1. Amitrajeet A. Batabyal & Peter Nijkamp, 2019. "Creative capital, information and communication technologies, and economic growth in smart cities," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 28(2), pages 142-155, February.
    2. Burgi, Constantin & Gorgulu, Nisan, 2021. "The Impact of the Spatial Population Distribution on Economic Growth," Working Papers 17-2021, Copenhagen Business School, Department of Economics.
    3. Amitrajeet A. Batabyal & Karima Kourtit & Peter Nijkamp, 2019. "Using local public goods to attract and retain the creative class: A tale of two cities," Regional Science Policy & Practice, Wiley Blackwell, vol. 11(3), pages 571-581, August.
    4. Zhang, Wei & Zhang, Ting & Li, Hangyu & Zhang, Han, 2022. "Dynamic spillover capacity of R&D and digital investments in China's manufacturing industry under long-term technological progress based on the industry chain perspective," Technology in Society, Elsevier, vol. 71(C).
    5. Constantin Bürgi & Nisan Gorgulu, 2022. "The Impact of the Spatial Population Distribution on Economic Growth: Evidence from the United States," CESifo Working Paper Series 10008, CESifo.
    6. Stefan Apostol & Eduardo Hernández-Rodríguez, 2023. "Digitalisation in European regions: Unravelling the impact of relatedness and complexity on digital technology adoption and productivity growth," Papers in Evolutionary Economic Geography (PEEG) 2317, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2023.
    7. Chunbo Zhou & Marios Sotiriadis, 2021. "Exploring and Evaluating the Impact of ICTs on Culture and Tourism Industries’ Convergence: Evidence from China," Sustainability, MDPI, vol. 13(21), pages 1-18, October.
    8. Batabyal, Amitrajeet A. & Beladi, Hamid, 2018. "Artists, engineers, and aspects of economic growth in a creative region," Economic Modelling, Elsevier, vol. 71(C), pages 214-219.
    9. Batabyal, Amitrajeet & Beladi, Hamid, 2021. "On the Existence of an Equilibrium in Models of Local Public Good Use by Cities to Attract the Creative Class," MPRA Paper 105196, University Library of Munich, Germany, revised 07 Jan 2021.

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