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The Knowledge Economy and Urban Economic Growth

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  • Otto Raspe

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  • Frank van Oort

    ()

Abstract

In this paper we contribute to the longstanding discussion on the role of knowledge to economic growth in a spatial context. We observe that in adopting the European policy strategy towards a competitive knowledge economy, The Netherlands is – as most European countries - mainly oriented towards industrial, technological factors. The policy focus is on R&D specialized regions in their spatial economic strategies. We place the knowledge economy in a broader perspective. Based on the knowledge economy literature, we value complementary indicators: the successful introduction of new products and services to the market (‘innovation’) and indicators of skills of employees (‘knowledge workers’). Using econometric analysis, we relate the three factors ‘R&D’, ‘innovation’ and ‘knowledge workers’ to regional economic growth. We conclude that the factors ‘innovation’ and ‘knowledge workers’ are more profoundly related to urban employment and productivity growth than the R&D-factor. Preferably, urban research and policymakers should therefore take all three knowledge factors into account when determining economic potentials of cities.

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Bibliographic Info

Paper provided by Utrecht University, Section of Economic Geography in its series Papers in Evolutionary Economic Geography (PEEG) with number 0607.

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Length: 33 pages
Date of creation: Apr 2006
Date of revision: Apr 2006
Handle: RePEc:egu:wpaper:0607

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Keywords: knowledge economy; economic geography; urban economic growth; innovation; knowledge workers; spatial econometrics;

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References

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  1. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  2. Vernon Henderson, 2001. "Marshall's Scale Economies," Working Papers 01-17, Center for Economic Studies, U.S. Census Bureau.
  3. Combes, Pierre-Philippe & Magnac, Thierry & Robin, Jean-Marc, 2003. "The Dynamics of Local Employment in France," CEPR Discussion Papers 3912, C.E.P.R. Discussion Papers.
  4. P.J.M. De Bruijn, 2004. ""MAPPING INNOVATION: REGIONAL DIMENSIONS OF INNOVATION AND NETWORKING IN THE NETHERLANDS"-super-1," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 95(4), pages 433-440, 09.
  5. McCloskey, Donald & Klamer, Arjo, 1995. "One Quarter of GDP Is Persuasion," American Economic Review, American Economic Association, vol. 85(2), pages 191-95, May.
  6. Godin, Benoit, 2004. "The New Economy: what the concept owes to the OECD," Research Policy, Elsevier, vol. 33(5), pages 679-690, July.
  7. Dominique Foray, 2006. "The Economics of Knowledge," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262562235, December.
  8. Frank van Oort & Anet Weterings & Heleen Verlinde, 2003. "Residential amenities of knowledge workers and the location of ICT-FIrms in the Netherlands," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 94(4), pages 516-523, 09.
  9. Jaffe, Adam B, 1989. "Real Effects of Academic Research," American Economic Review, American Economic Association, vol. 79(5), pages 957-70, December.
  10. Henry van der Wiel & George van Leeuwen, 2003. "Do ICT spillovers matter; evidence from Dutch firm-level data," CPB Discussion Paper 26, CPB Netherlands Bureau for Economic Policy Analysis.
  11. Egbert Wever & Erik Stam, 1999. "Clusters of High Technology SMEs: The Dutch Case," Regional Studies, Taylor & Francis Journals, vol. 33(4), pages 391-400.
  12. Koen Frenken & Frank Van Oort & Thijs Verburg, 2007. "Related Variety, Unrelated Variety and Regional Economic Growth," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 685-697.
  13. Adam B. Jaffe & Manuel Trajtenberg, 2005. "Patents, Citations, and Innovations: A Window on the Knowledge Economy," MIT Press Books, The MIT Press, edition 1, volume 1, number 026260065x, December.
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Citations

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Cited by:
  1. Hoffman, Dennis L. & Hogan, Timothy D., 2008. "Sunbelt Growth and the Knowledge Economy: An Exploratory Approach," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 38(2).
  2. Otto Raspe & Frank Oort, 2011. "Growth of new firms and spatially bounded knowledge externalities," The Annals of Regional Science, Springer, vol. 46(3), pages 495-518, June.
  3. Edward Bendit & Amnon Frenkel & Sigal Kaplan, 2011. "Knowledge-workers and the sustainable city: the travel consequences of car-related job-perks," ERSA conference papers ersa11p389, European Regional Science Association.
  4. Raspe, Otto & van Oort, Frank G., 2011. "Firm heterogeneity, productivity and spatially bounded knowledge externalities," Socio-Economic Planning Sciences, Elsevier, vol. 45(1), pages 38-47, March.
  5. Amnon Frenkel & Edward Benedit & Sigal Kaplan, 2011. "Residential choice of knowledge-workers in a 'startup metropolis': the role of amenities, workplace and lifestyle," ERSA conference papers ersa11p208, European Regional Science Association.
  6. Kristin Kronenberg & Kati Volgmann, 2014. "Knowledge-intensive employment change in the Dutch Randstad and the German Rhine-Ruhr area: comparable patterns of growth and decline in two metropolitan regions?," Jahrbuch für Regionalwissenschaft, Springer, vol. 34(1), pages 39-60, February.
  7. Kronenberg, Kristin & Volgmann, Kati, 2013. "Knowledge-intensive employment growth in the Dutch Randstad and the German Rhine-Ruhr area: the impact of centrality and peripherality," MPRA Paper 44760, University Library of Munich, Germany.
  8. Raspe, Otto & van Oort, Frank, 2008. "Firm Growth and Localized Knowledge Externalities," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 38(2).
  9. Aurélie LALANNE (GREThA, CNRS, UMR 5113) & Guillaume POUYANNE ( GREThA, CNRS, UMR 5113), 2012. "Ten years of metropolization in economics: a bibliometric approach (In French)," Cahiers du GREThA 2012-11, Groupe de Recherche en Economie Théorique et Appliquée.
  10. Russ, Meir & Jones, Jeanette K., 2008. "Regional Economic Development Indicators for a Knowledge-Based Economy with Knowledge Deprivation," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 38(2).
  11. Frank Oort & Johan Oud & Otto Raspe, 2009. "The urban knowledge economy and employment growth: a spatial structural equation modeling approach," The Annals of Regional Science, Springer, vol. 43(4), pages 859-877, December.
  12. Matthias Siller & Christoph Hauser & Janette Walde & Gottfried Tappeiner, 2014. "The Multiple Facets of Regional Innovation," Working Papers 2014-19, Faculty of Economics and Statistics, University of Innsbruck.
  13. Tommaso Ciarli & Valentina Meliciani & Maria Savona, 2012. "Knowledge Dynamics, Structural Change And The Geography Of Business Services," Journal of Economic Surveys, Wiley Blackwell, vol. 26(3), pages 445-467, 07.

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