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On Clustering in the Location of R&D: Statics and Dynamics

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  • Robin Cowan
  • William Cowan

Abstract

Empirical analyses of research and development find strong evidence that these activities tend to cluster geographically. Clusters are thought to emerge from the presence of localized positive externalities. This paper presents a model of this clustering behaviour. We find that phase changes in clustering exist both as the strength of local externalities changes and as the degree of heterogeneity among firms changes. The dynamics of the system are examined as it responds to shocks to the size of the market for R&D output, and the length scale of the spatially dependent externalities. Dynamic responses take place in two distinct stages: a rapid response to the change in market systems which takes place throughout the space, with litlle regard to externality effects; followed by a slow re-agglomeration process as producers change their spatial decisions to lower the costs of the new production level.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Economics of Innovation and New Technology.

Volume (Year): 6 (1998)
Issue (Month): 2-3 ()
Pages: 201-230

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Handle: RePEc:taf:ecinnt:v:6:y:1998:i:2-3:p:201-230

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Related research

Keywords: R&D; agglomeration; spatial models; interdependence; externalities J.E.L. Classification: D21; 032; R1I. R12; R30;

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Cited by:
  1. Giulio Bottazzi & Giorgio Fagiolo & Giovanni Dosi, 2002. "Mapping Sectoral Patterns of Technological Accumulation into the Geography of Corporate Locations. A Simple Model and Some Promising Evidence," LEM Papers Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy 2002/21, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  2. Giulio Bottazzi & Giovanni Dosi & Giorgio Fagiolo, 2001. "On the Ubiquitous Nature of the Agglomeration Economies and their Diverse Determinants: Some Notes," LEM Papers Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy 2001/10, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.

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