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• Patrizio Lecca

In this paper we present a computable general equilibrium model for the region of Sardinia for the purpose of evaluating the capacity of R&D policies to affect the long run rate of growth. The model incorporates induced technical change and allow for external knowledge spillovers. We find that the cost of R&D policies may change according to the wage setting prevailing into the region. Furthermore, the capacity of such a policy to generate knowledge spillovers from the international and interregional trade are quite modest. Indeed, the capacity of the regional system to internalize the technological level embody in the imported good is partially offset by an increase in internal efficiency lowering the share of import but increasing competitiveness.

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Paper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 200811.

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Date of creation: 2008
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Handle: RePEc:cns:cnscwp:200811

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Related research

Keywords: Regional modelling; Induced Technical Change and R&D policies;

Find related papers by JEL classification:
R13 - Urban, Rural, and Regional Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
R58 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - Regional Development Policy

This paper has been announced in the following NEP Reports:

• NEP-ALL-2008-07-30 (All new papers)
• NEP-CMP-2008-07-30 (Computational Economics)
• NEP-GEO-2008-07-30 (Economic Geography)
• NEP-IFN-2008-07-30 (International Finance)
• NEP-KNM-2008-07-30 (Knowledge Management & Knowledge Economy)

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This page was last updated on 2009-11-27.