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Sketching Out a Model of Innovation, Face-to-face Interaction and Economic Geography

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  • Philip McCann

Abstract

Abstract This paper investigates the links between face-to-face interaction, the promotion of innovation, and the location behaviour of innovative firms. While face-to-face contact is an essential feature of most innovation behaviour, the importance of the frequency of face-to-face contact for innovation varies significantly according to different firm types. We therefore construct a simple optimization model in order to examine the relationship between the frequency of face-to-face interaction, the costs of land use, and the location of innovative firms. This allows us to distinguish between the types of firms which will be clustered together in space in order to foster innovation, from those innovating firms which will be more geographically dispersed. It will be seen that the model produces theoretical results which are largely consistent with both orthodox neo-classical urban economic models of location and also with much of the theoretical and empirical literature on the geography of innovation. Importantly, however, many aspects of the location of innovative firms which cannot be predicted on the basis of orthodox urban economic models are captured by this model.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Spatial Economic Analysis.

Volume (Year): 2 (2007)
Issue (Month): 2 ()
Pages: 117-134

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Handle: RePEc:taf:specan:v:2:y:2007:i:2:p:117-134

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Related research

Keywords: Innovation; frequency; location; land rents; O310; R300;

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Cited by:
  1. Steven Bond-Smith, 2012. "A Regional Model of Endogenous Growth with Creative Destruction," Working Papers in Economics 12/02, University of Waikato, Department of Economics.
  2. Karlsson, Charlie & Johansson, Börje & Kobayashi, Kiyoshi & Stough, Roger R., 2014. "Knowledge, innovation and space," Working Paper Series in Economics and Institutions of Innovation 367, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  3. Mark Partridge & Rose Olfert, 2011. "The Winners' Choice: Sustainable Economic Strategies for Successful 21st Century Regions," ERSA conference papers ersa11p1655, European Regional Science Association.
  4. Ana Paula Faria & Natália Barbosa & Vasco Eiriz, 2013. "Firms’ innovation across regions: an exploratory study," NIPE Working Papers 12/2013, NIPE - Universidade do Minho.
  5. Mark D. Partridge & Dan S. Rickman & Kamar Ali & M. Rose Olfert, 2009. "Recent Spatial Growth Dynamics in Wages and Housing Costs: Proximity to Urban Production Externalities and Consumer Amenities," Economics Working Paper Series 0906, Oklahoma State University, Department of Economics and Legal Studies in Business.
  6. Gordon Mulligan & Mark Partridge & John Carruthers, 2012. "Central place theory and its reemergence in regional science," The Annals of Regional Science, Springer, vol. 48(2), pages 405-431, April.
  7. Berdegué, J. & Carriazo, F. & Jara, B. & Modrego, F. & Soloaga, I., 2012. "Ciudades, territorios y crecimiento inclusivo en Latinoamérica: Los casos de Chile, Colombia y México," Working papers 118, Rimisp Latin American Center for Rural Development.
  8. Berdegué, J. & Jara, B. & Modrego, F., 2012. "Ciudades, territorios y crecimiento inclusivo en Chile," Working papers 103, Rimisp Latin American Center for Rural Development.
  9. Grimes, Arthur & Le Vaillant, Jason & McCann, Philip, 2011. "Auckland's Knowledge Economy: Australasian and European Comparisons," Occasional Papers 11/2, Ministry of Economic Development, New Zealand.
  10. Rehfeld, Dieter & Terstriep, Judith, 2013. "Regionale Innovationssysteme: 20 Jahre "Regional Innovation System Studies"," Forschung Aktuell 11/2013, Institut Arbeit und Technik (IAT), Westfälische Hochschule, University of Applied Sciences.
  11. M. Olfert & Murray Jelinski & Dimitrios Zikos & John Campbell, 2012. "Human capital drift up the urban hierarchy: veterinarians in Western Canada," The Annals of Regional Science, Springer, vol. 49(2), pages 551-570, October.

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