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A Model of the Learning Process with Local Knowledge Externalities Illustrated with an Integrated Graphical Framework

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Author Info
Mário Alexandre Silva () (Faculdade de Economia, Universidade do Porto)
Aurora A. C. Teixeira () (CEMPRE, Faculdade de Economia, Universidade do Porto)

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Abstract

We present a unified graphical framework accounting for the nature and impact of spillover effects. The dynamics of the learning process with a specific spillover transfer mechanism can be illustrated by recurring to this four-quadrant picture. In particular, a whole cycle of technological learning is explained with help of such a graphical representation of the basic learning process in the presence of knowledge spillovers. We hypothesize two different functional specifications of spillover exchanges among firms within a local innovation system. Each conceivable shape for the knowledge transfer relationship among firms expresses a possible mode and intensity of information processing arising from technology spillovers. A general proposition regarding the relative efficiency of the two alternative formal models with spillovers effects is derived. The basic models with spillover effects are then extended in several relevant directions.

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Publisher Info
Paper provided by Universidade do Porto, Faculdade de Economia do Porto in its series FEP Working Papers with number 179.

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Length: 21 pages.
Date of creation: Jun 2005
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Handle: RePEc:por:fepwps:179

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Related research
Keywords: Learning; knowledge; technology spillovers; knowledge externalities; local innovation systems;

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Find related papers by JEL classification:
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D
R19 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Other

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  1. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October. [Downloadable!] (restricted)
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