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Regional Specialisation and Technological Leapfrogging

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Author Info

  • Mary Amiti

    (Department of Economics and Finance, La Trobe University)

Abstract

This paper investigates circumstances where a region loses its technological leadership after some major technological breakthrough. Input-output linkages between firms in a Cournot upstream industry and a perfectly competitive downstream industry create forces for agglomeration in particular locations, driving up prices of immobile factors. A new superior technology, incompatible with the old, will not benefit from these linkages, so is more likely to be established in locations with little existing industry due to lower factor prices. Furthermore, it is possible that the old and new technologies can coexist.

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Bibliographic Info

Paper provided by School of Economics, La Trobe University in its series Working Papers with number 1998.14.

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Length: 23 pages
Date of creation: 1998
Date of revision:
Handle: RePEc:ltr:wpaper:1998.14

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Web page: http://www.latrobe.edu.au/economics
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Related research

Keywords: Reginal Economy; Technology; Enterprises EDIRC Provider-Institution: RePEc:edi:smlatau;

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Cited by:
  1. André Rocha & José Pedro Pontes, 2005. "Spatial Cournot Oligopoly with Vertical Linkages," Working Papers Department of Economics 2005/11, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
  2. Gilles Duranton & Diego Puga, . "DIVERSITY AND SPECIALISATION IN CITIES. Why, where and when does it matter?," UFAE and IAE Working Papers 443.99, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  3. Lisa A. Cameron & Mary Amiti, 2004. "Economic Geography and Wages," Econometric Society 2004 Australasian Meetings 253, Econometric Society.
  4. Gallo, Fredrik, 2005. "Increasing Returns, Input-Output Linkages, and Technological Leapfrogging," Working Papers 2005:22, Lund University, Department of Economics, revised 19 Jul 2006.
  5. Amiti, Mary, 2001. "Location of Vertically Linked Industries: Agglomeration versus Comparative Advantage," CEPR Discussion Papers 2800, C.E.P.R. Discussion Papers.
  6. José Pedro Pontes, 2004. "Agglomeration in a Vertically-linked Oligopoly," Working Papers Department of Economics 2004/06, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.

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