Cognitive Capital and Islands of Innovation: The Lucas Growth Model from a Regional Perspective
AbstractKnowledge triggers regional growth. Evidence suggests that skilled labour force concentrates in islands of innovation, determining an advantage for innovative regions and a challenge for lagging ones. We address the role of knowledge in shaping effective markets for skilled labour. Estimates are based on the Lucas (1988) model, with EVS and EUROSTAT data. The externality driving growth in the model is cognitive capital. Empirical tests show that a higher endowment of cognitive capital generates increasing returns to knowledge, favouring the emergence of islands of innovation; regions with a high endowment of cognitive capital attract knowledge spillovers from neighbours.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 11-116/3.
Date of creation: 09 Aug 2011
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human capital; cognitive capital; knowledge spillovers; islands of innovation;
Find related papers by JEL classification:
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-08-15 (All new papers)
- NEP-CSE-2011-08-15 (Economics of Strategic Management)
- NEP-DGE-2011-08-15 (Dynamic General Equilibrium)
- NEP-GEO-2011-08-15 (Economic Geography)
- NEP-INO-2011-08-15 (Innovation)
- NEP-KNM-2011-08-15 (Knowledge Management & Knowledge Economy)
- NEP-SBM-2011-08-15 (Small Business Management)
- NEP-URE-2011-08-15 (Urban & Real Estate Economics)
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