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The transmission of knowledge spillovers and its impact on regional economic growth

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  • Dohse, Dirk

Abstract

Endogeneous growth theory views externalities and particularly externalities associated with knowledge spillovers as the engine of economic growth. In some influential papers (e.g. Glaeser et al. 1992) it is argued that these knowledge spillovers do not transmit costlessly over space. Rather, location and geographic proximity matter. In the current paper a simple two country model is developed. Each country consists of a three-stage urban hierarchy: a central city (the core), a number of smaller cities and a rural hinterland. New technical knowledge originates in the core. The transmission of knowledge to the periphery and to the foreign country is impeded by geographic distance and national borders, inter alia. Depending on the relative importance of these obstacles different spatial patterns of knowledge diffusion emerge. The aim of the model is to analyze how different patterns of knowledge diffusion affect regional and national economic growth in the innovating country and in the imitating country.

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Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 774.

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Date of creation: 1996
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Handle: RePEc:kie:kieliw:774

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  1. Jaffe, Adam B & Trajtenberg, Manuel & Henderson, Rebecca, 1993. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 577-98, August.
  2. Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
    • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
  3. Audretsch, David B & Stephan, Paula E, 1996. "Company-Scientist Locational Links: The Case of Biotechnology," American Economic Review, American Economic Association, vol. 86(3), pages 641-52, June.
  4. Davies, Stephen W., 1979. "Inter-firm diffusion of process innovations," European Economic Review, Elsevier, vol. 12(4), pages 299-317, October.
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Cited by:
  1. Norman Loayza & Pablo Fajnzylber & César Calderón, 2005. "Economic Growth in Latin America and the Caribbean : Stylized Facts, Explanations, and Forecasts," World Bank Publications, The World Bank, number 7315.
  2. Döring, Thomas & Schnellenbach, Jan, 2004. "What Do We Know About Geographical Knowledge Spillovers and Regional Growth? A Survey of the Literature," Research Notes 14, Deutsche Bank Research.
  3. Döring, Thomas, 2005. "Räumliche Externalitäten von Wissen und ihre Konsequenzen für die Ausgestaltung des Finanzausgleichs," Forschungs- und Sitzungsberichte der ARL: Aufsätze, in: Das föderative System in Deutschland: Bestandsaufnahme, Reformbedarf und Handlungsempfehlungen aus raumwissenschaftlicher Sicht, pages 93-120 Akademie für Raumforschung und Landesplanung (ARL) - Leibniz-Forum für Raumwissenschaften.

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