Advanced Search
MyIDEAS: Login

Innovation Diffusion and the Evolution of Regional Disparities

Contents:

Author Info

  • Ugo FRATESI

    ([n.a.])

Abstract

This article investigates the effect that the interaction between the creation and the spatial diffusion of technology brings on regional disparities. We will show that an increase in the pace of innovation, as it has happened with the "technological revolution" can engender regional income disparities; we will also show that if, afterwards, the speed of di®usion also increases enough, these disparities can fade out. The paper will not, at this stage, address the problem of which e®ect will eventually prevail in the real World, since the process of ICTs diffusion is both increasing the easiness of transfer of blueprinted knowledge across places and having e®ects on the spatial concentration of innovation. To analyse the problem, we will first build a simple model with technological disparities as the source of income disparities and a set up apt to represent all the knowledge flows. The first result is that wide enough technological differences can be the source of income disparities. The basic model will then be used in two different ways for the study of innovation and diffusion mechanisms. We will show that the most important variable to determine if income disparities exist is the ratio between the speed of diffusion and the speed of innovation. In particular, when this ratio is low, the most likely prediction is an equilibrium with both technological and income disparities. For intermediate values, technological disparities will exist, but will not be large enough to generate income disparities; for higher values, there will not be technological disparities anymore and, consequently, no income disparities. The paper also supports an important policy conclusion: when trying to reduce regional disparities, targeting innovation di®usion and the acquisition of external knowledge by the less developed region will be more e®ective than favoring own innovation if the knowledge base of the lagging region is not wide enough. This is due to the fact that innovation is a process cumulative on previously possessed knowledge, which can be a scarce resource in most lagging regions.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://docs.dises.univpm.it/web/quaderni/pdf/186.pdf
File Function: First version, 2003
Download Restriction: no

Bibliographic Info

Paper provided by Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali in its series Working Papers with number 186.

as in new window
Length: 26
Date of creation: Jul 2003
Date of revision:
Handle: RePEc:anc:wpaper:186

Contact details of provider:
Postal: Piazzale Martelli, 8, 60121 Ancona
Phone: +39 071 220 7100
Fax: +39 071 220 7102
Web page: http://www.dises.univpm.it/
More information through EDIRC

Related research

Keywords: ICTs; regional disparities; spatial innovation diffusion; technological spillovers;

Other versions of this item:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Fujita, Masahisa & Thisse, Jacques-François, 1996. "Economics of Agglomeration," CEPR Discussion Papers 1344, C.E.P.R. Discussion Papers.
  2. Ugo Fratesi, 2003. "Innovation Diffusion and the Evolution of Regional Disparities," ERSA conference papers ersa03p327, European Regional Science Association.
  3. Alberto BUCCI, 1999. "Horizontal innovation, market power and growth," Working Papers 120, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  4. Alessandro STERLACCHINI, 2000. "The determinants of export performance: A firmlevel study in Italian Manufacturing," Working Papers 142, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  5. Andrés Rodríguez-Pose, 2001. "articles: Is R&D investment in lagging areas of Europe worthwhile? Theory and empirical evidence," Papers in Regional Science, Springer, vol. 80(3), pages 275-295.
  6. Antonio G. CALAFATI, 2000. "Albert O. Hirschman on Economic Evolution," Working Papers 132, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  7. Maria Rosaria CARILLO & Alberto ZAZZARO, 2001. "Innovazione, ricerca della rendita e prestigio sociale: verso una teoria dinamica delle professioni," Working Papers 148, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  8. Stefano SANTACROCE, 1999. "Graduates in the Labour Market, Determinants of Employment Success," Working Papers 124, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  9. Antonio G. CALAFATI, 1999. "Evoluzione dei sistemi locali e conservazione nei Parchi naturali," Working Papers 116, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  10. Luca PAPI & Debora REVOLTELLA, 1999. "Foreign Direct Investment in the Banking Sector: a Transitional Economy Perspective," Working Papers 113, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  11. Paul Romer, 1991. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
  12. Luca Papi & Alberto Zazzaro, 2000. "How Does the EU Agenda Influence Economies outside the EU? The Case of Tunisia," Development Working Papers 148, Centro Studi Luca d\'Agliano, University of Milano.
  13. Antonio G. CALAFATI, 2000. "On Industrial Districts," Working Papers 133, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  14. Massimiliano BRATTI, 2002. "Parents' Current Income, Long-term Characteristics and Children's Education: Evidence from the 1970 British Cohort," Working Papers 174, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  15. Chui, Michael, et al, 2002. " North-South Models of Growth and Trade," Journal of Economic Surveys, Wiley Blackwell, vol. 16(2), pages 123-65, April.
  16. Chris Freeman & Luc Soete, 1997. "The Economics of Industrial Innovation, 3rd Edition," MIT Press Books, The MIT Press, edition 3, volume 1, number 0262061953, December.
  17. Massimo GIULIODORI, 2002. "Monetary Policy Shocks and the Role of House Prices Across European Countries," Working Papers 164, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  18. Antonio G. CALAFATI & Francesca MAZZONI, 2002. "Una citta' in nuce nelle Marche," Working Papers 177, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  19. Peretto, Pietro F., 1999. "Industrial development, technological change, and long-run growth," Journal of Development Economics, Elsevier, vol. 59(2), pages 389-417, August.
  20. Zagaglia Paolo, 2002. "On (Sub)Optimal Monetary Policy Rules under Untied Fiscal Hands," Rivista italiana degli economisti, Società editrice il Mulino, issue 2, pages 219-248.
  21. Roberto ESPOSTI & Franco SOTTE, 1999. "Territorial Heterogeneity and Institutional Structures in Shaping Rural Development Policies in Europe," Working Papers 114, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  22. Audretsch, David B, 1998. "Agglomeration and the Location of Innovative Activity," Oxford Review of Economic Policy, Oxford University Press, vol. 14(2), pages 18-29, Summer.
  23. Alberto BUCCI & Fabio FIORILLO & Stefano STAFFOLANI, 2000. "Can Market Power influence Employment, Wage Inequality and Growth?," Working Papers 141, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  24. Robert J. Gordon, 2000. "Does the "New Economy" Measure up to the Great Inventions of the Past?," NBER Working Papers 7833, National Bureau of Economic Research, Inc.
  25. Giorgio BARBA NAVARETTI & Enrico SANTARELLI & Marco VIVARELLI, 2000. "The Role of Subsidies in Promoting Italian Joint Ventures in Least Developed and Transition Economies," Working Papers 144, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  26. Massimiliano Bratti, 2003. "Labour force participation and marital fertility of Italian women: The role of education," Journal of Population Economics, Springer, vol. 16(3), pages 525-554, 08.
  27. Antonio G. CALAFATI, 2003. "Economia della citta' dispersa," Working Papers 179, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  28. Sala-i-martin, X. & Barro, R.J., 1995. "technological Diffusion, Convergence and Growth," Papers 735, Yale - Economic Growth Center.
  29. Krugman, Paul, 1979. "A Model of Innovation, Technology Transfer, and the World Distribution of Income," Journal of Political Economy, University of Chicago Press, vol. 87(2), pages 253-66, April.
  30. Riccardo LUCCHETTI, 1999. "Analytic Score for Multivariate GARCH Models," Working Papers 119, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  31. Massimiliano BRATTI & Stefano STAFFOLANI, 2001. "Performance accademica e scelta della facolta' universitaria: aspetti teorici e evidenza empirica," Working Papers 152, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  32. Davide Iacoboni & Alberto Zazzaro, 2000. "Legal system efficiency, information production, and technological choice: a banking model," Heterogeneity and monetary policy 0005, Universita di Modena e Reggio Emilia, Dipartimento di Economia Politica.
  33. Fabiano COMPAGNUCCI & Francesca MAZZONI, 2002. "Il territorio dei parchi nazionali italiani," Working Papers 172, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  34. Antonio G. CALAFATI, 2000. "How Do Collective Agents Think?," Working Papers 131, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  35. Riccardo LUCCHETTI & Alessandro STERLACCHINI, 2001. "Factors Affecting the Adoption of ICTs Among SMEs: Evidence From an Italian Survey," Working Papers 155, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  36. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-40, June.
  37. Martin, Philippe & Ottaviano, Gianmarco I P, 2001. "Growth and Agglomeration," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(4), pages 947-68, November.
  38. Renato BALDUCCI & Stefano STAFFOLANI, 2000. "Quota del lavoro e occupazione in presenza di contrattazione efficiente," Working Papers 143, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  39. Alessandro STERLACCHINI, 2000. "L'accesso alle professioni regolamentate: un' analisi empirica sui laureati degli atenei marchigiani," Working Papers 137, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  40. Marco Gallegati, 2005. "Financial constraints and the balance sheet channel: a re-interpretation," Applied Economics, Taylor & Francis Journals, vol. 37(16), pages 1925-1933.
  41. Davide BERLONI & Roberto ESPOSTI, 1999. "Scelte residenziali e mercati locali del lavoro. Il caso delle marche," Working Papers 126, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  42. Fabio FIORILLO & Giulio PALOMBA, 2001. "Un Modello CGE per l'analisi del federalismo fiscale all'italiana," Working Papers 153, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  43. Marco GALLEGATI & Mauro GALLEGATI, 2001. "European Business Cycles: 1960-1998," Working Papers 149, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  44. Massimiliano BRATTI, 1999. "A study of the differences across universities in students' degree performance: the role of conventional university inputs," Working Papers 125, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  45. Lucchetti, Riccardo, 2002. "Inconsistency of naive GMM estimation for QR models with endogenous regressors," Economics Letters, Elsevier, vol. 75(2), pages 179-185, April.
  46. Enrico GUZZINI, 2002. "The Liberal Paradox and Non-Welfarist Theories: To What Extent is There a Compatibility?," Working Papers 159, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  47. Grossman, Gene M & Helpman, Elhanan, 1990. "Comparative Advantage and Long-run Growth," American Economic Review, American Economic Association, vol. 80(4), pages 796-815, September.
  48. Francesco TROMBETTA, 1999. "Quanto costa controllare la natura? Il caso Mississippi," Working Papers 122, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  49. Luca Nunziata & Stefano Staffolani, 2001. "On Short-Term Contracts Regulations," Economics Papers 2001-W7, Economics Group, Nuffield College, University of Oxford.
  50. Zazzaro Alberto, 2002. "The Allocation of Entrepreneurial Talent under Imperfect Lending Decisions," Rivista italiana degli economisti, Società editrice il Mulino, issue 3, pages 303-330.
  51. Dollar, David, 1993. "Technological Differences as a," American Economic Review, American Economic Association, vol. 83(2), pages 431-35, May.
  52. Davide TICCHI, 2000. "Investment and uncertainty with recursive preferences," Working Papers 127, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  53. Giulio PALOMBA, 2003. "GARCH multivariati e approccio di Black.Litterman nell'asset allocation tattica: un'analisi empirica," Working Papers 185, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  54. Bucci, Alberto & Saglam, H.C., 2000. "Growth Maximizing Patent Life-Time," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2000019, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  55. Massimiliano BRATTI & Stefano STAFFOLANI, 2013. "Student Time Allocation and Educational Production Functions," Annales d'Economie et de Statistique, ENSAE, issue 111-112, pages 5.
  56. Luca DE BENEDICTIS & Massimo TAMBERI, 2002. "A note on the Balassa Index of Revealed Comparative Advantage," Working Papers 158, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  57. Emma SARNO & Alberto ZAZZARO, 2003. "Structural Convergence of Macroeconomic Time Series: Evidence for Inflation Rates in EU Countries," Working Papers 180, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  58. Giuseppe RICCIARDO LAMONICA, 2002. "La funzionalita' nelle zone omogenee delle Marche," Working Papers 165, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  59. Alberto ZAZZARO, 2002. "How Heterodox is the Heterodoxy of the Monetary Circuit Theory? The Nature of Money and the Microeconomy of the Circuit," Working Papers 163, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  60. Fabiano COMPAGNUCCI, 2002. "Sviluppo senza crescita: il sistema locale del Casentino," Working Papers 168, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  61. Paolo ZAGAGLIA, 2002. "Matlab Implementation of the AIM Algorithm: A Beginner's Guide," Working Papers 169, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  62. Dosi, Giovanni, 1988. "Sources, Procedures, and Microeconomic Effects of Innovation," Journal of Economic Literature, American Economic Association, vol. 26(3), pages 1120-71, September.
  63. Luca DE BENEDICTIS & Massimo TAMBERI, 2002. "Il modello di specializzazione italiano: normalita' e asimmetria," Working Papers 160, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  64. P Cooke & M G Uranga & G Etxebarria, 1998. "Regional systems of innovation: an evolutionary perspective," Environment and Planning A, Pion Ltd, London, vol. 30(9), pages 1563-1584, September.
  65. Alberto BUCCI, 2000. "On Scale Effects, Market Power and Growth when Human and Technological Capital are Complements," Working Papers 134, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  66. Roberto ESPOSTI, 1999. "Spillover tecnologici e origine della tecnologia agricola," Working Papers 112, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  67. Dixit, Avinash K & Stiglitz, Joseph E, 1975. "Monopolistic Competition and Optimum Product Diversity," The Warwick Economics Research Paper Series (TWERPS) 64, University of Warwick, Department of Economics.
  68. Roberto ESPOSTI & Pierpaolo PIERANI, 2002. "Public R&D Investment and Cost Structure in Italian Agriculture 1960-1995," Working Papers 176, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  69. Riccardo LUCCHETTI & Luca PAPI & Alberto ZAZZARO, 1999. "Efficienza del sistema bancario e crescita economica nelle regioni italiane," Working Papers 121, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  70. Francesco CHELLI & L. ROSTI, 2001. "Youth Unemployment and Self-Employment in Italy," Working Papers 156, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  71. Fabio FIORILLO & Stefano STAFFOLANI, 2000. "To redistribute or not? Unemployment benefit, workfare and citizen's income in a dual labour market," Working Papers 128, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  72. Fabio FIORILLO & Claudio SOCCI, 2002. "Quale politica fiscale regionale? Analisi del federalismo italiano attraverso un modello CGE," Working Papers 178, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  73. Antonio G. CALAFATI & Francesca MAZZONI, 2001. "Conservazione, sviluppo locale e politiche agricole nei parchi naturali," Working Papers 147, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  74. Dollar, David, 1983. "Technological Innovation, Capital Mobility, and the Product Cycle in North-South Trade," Working Papers 83-31, C.V. Starr Center for Applied Economics, New York University.
  75. Marco CUCCULELLI, 1999. "Competizione sui mercati internazionali e misure del potere di mercato. Il caso dell'industria italiana dell'elettrodomestico," Working Papers 118, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  76. Massimo TAMBERI, 1999. "Nel mosaico economico delle marche: origini e trasformazioni," Working Papers 123, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  77. Antonio G. CALAFATI & Francesca MAZZONI, 2002. "Conservation Policies as Local Development Policies: The Case of the Italian National Parks," Working Papers 171, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  78. Maria Rosaria CARILLO & Alberto ZAZZARO, 2002. "The Enigma of Medieval Craft Guilds: A Model of Social Inertia and Technological Change," Working Papers 167, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  79. Massimiliano BRATTI, 2001. "Oltre la scuola dell'obbligo. Un'analisi empirica della decisione di proseguire nell'istruzione post-obbligatoria in Italia," Working Papers 151, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Ugo FRATESI, 2004. "Regional Economies, Innovation and Competitiveness in a System Dynamics Representation," Working Papers 204, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  2. Elvio MATTIOLI, 2003. "The measurement of coherence in the evaluation of criteria and its effects or ranking problems illustrated using a multicriteria decision method," Working Papers 199, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  3. Marcello MESSORI & Alberto ZAZZARO, 2004. "Monetary profits within the circuit: Ponzi finance oer "mors tua, vita mea"?," Working Papers 200, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  4. Nicola MATTEUCCI & Alessandro STERLACCHINI, 2003. "ICT and Employment Growth in Italian Industries," Working Papers 193, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  5. Ugo Fratesi, 2003. "Innovation Diffusion and the Evolution of Regional Disparities," ERSA conference papers ersa03p327, European Regional Science Association.
  6. Roberto ESPOSTI & Pierpaolo PIERANI, 2005. "Price, Private Demand and Optimal Provision of Public R&D in Italian Agriculture," Working Papers 238, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  7. Gündüz Atalik & Seda Kundak, 2004. "Effects of innovation diffusion on the development level for some European regions in the expansion period of the European Union," ERSA conference papers ersa04p30, European Regional Science Association.
  8. Stefania BUSSOLETTI & Roberto ESPOSTI, 2004. "Regional Convergence, Structural Funds and the Role of Agricolture in the EU. A Panel-Data Approach," Working Papers 220, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:anc:wpaper:186. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Maurizio Mariotti).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.