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Culture and diversity in knowledge creation

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  • Berliant, Marcus
  • Fujita, Masahisa

Abstract

Is the paradise of effortless communication the ideal environment for knowledge creation? Or, can the development of local culture in regions raise knowledge productivity compared to a single region with a unitary culture? In other words, can a real technological increase in the cost of collaboration and the cost of public knowledge flow between regions, resulting in cultural differentiation between regions, increase welfare? In our framework, a culture is a set of ideas held exclusively by residents of a location. In general in our model, the equilibrium path generates separate cultures in different regions. When we compare this to the situation where all workers are resident in one region, R & D workers become too homogeneous and there is only one culture. As a result, equilibrium productivity in the creation of new knowledge is lower relative to the situation when there are multiple cultures and workers are more diverse.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 27997.

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Date of creation: 09 Jan 2011
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Handle: RePEc:pra:mprapa:27997

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Keywords: knowledge creation; knowledge diversity; ideas and culture;

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References

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  1. Berliant, Marcus & Fujita, Masahisa, 2010. "The Dynamics of Knowledge Diversity and Economic Growth," MPRA Paper 21009, University Library of Munich, Germany.
  2. Berliant, Marcus & Fujita, Masahisa, 2007. "Dynamics of knowledge creation and transfer: The two person case," MPRA Paper 4973, University Library of Munich, Germany.
  3. Berliant, Marcus & Fujita, Masahisa, 2007. "Knowledge creation as a square dance on the Hilbert cube," MPRA Paper 2884, University Library of Munich, Germany.
  4. William Kerr & William Lincoln, 2010. "The Supply Side of Innovation: H-1B Visa Reforms and US Ethnic Invention," William Davidson Institute Working Papers Series wp978, William Davidson Institute at the University of Michigan.
  5. Ajay Agrawal & Devesh Kapur & John McHale, 2008. "Brain Drain or Brain Bank? The Impact of Skilled Emigration on Poor-Country Innovation," NBER Working Papers 14592, National Bureau of Economic Research, Inc.
  6. Ottaviano, Gianmarco Ireo Paolo & Peri, Giovanni, 2004. "The Economic Value of Cultural Diversity: Evidence from US Cities," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4233, C.E.P.R. Discussion Papers.
  7. Ottaviano, Gianmarco Ireo Paolo & Peri, Giovanni, 2008. "Immigration and National Wages: Clarifying the Theory and the Empirics," CEPR Discussion Papers, C.E.P.R. Discussion Papers 6916, C.E.P.R. Discussion Papers.
  8. Marcus Berliant & Robert R. Reed III & Ping Wang, 2000. "Knowledge Exchange, Matching, and Agglomeration," Vanderbilt University Department of Economics Working Papers 0033, Vanderbilt University Department of Economics.
  9. Belderbos, Rene & Leten, Bart & Suzuki, Shinya, 2009. "Does Excellence in Academic Research Attract Foreign R&D?," MERIT Working Papers 066, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  10. Ana Rute Cardoso & Paulo Guimar�es & Klaus F. Zimmermann, 2010. "Trends in Economic Research: An International Perspective," Kyklos, Wiley Blackwell, Wiley Blackwell, vol. 63(4), pages 479-494, November.
  11. Gilles Duranton & Diego Puga, 2000. "Nursery cities: urban diversity, process innovation and the life-cycle of products," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 20204, London School of Economics and Political Science, LSE Library.
  12. Helsley, Robert W. & Strange, William C., 2004. "Knowledge barter in cities," Journal of Urban Economics, Elsevier, vol. 56(2), pages 327-345, September.
  13. Guiso, Luigi & Sapienza, Paola & Zingales, Luigi, 2006. "Does Culture Affect Economic Outcomes?," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5505, C.E.P.R. Discussion Papers.
  14. Giovanni Prarolo & Elena Bellini & Gianmarco I.P. Ottaviano & Dino Pinelli, 2009. "Cultural Diversity and Economic Performance: Evidence from European Regions," Working Papers, Fondazione Eni Enrico Mattei 2009.63, Fondazione Eni Enrico Mattei.
  15. David Card, 2007. "How Immigration Affects U.S. Cities," CReAM Discussion Paper Series 0711, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
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Citations

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Cited by:
  1. Ryusuke Ihara & Shizu Yamamoto, 2012. "Does labor diversity cause agglomeration in Japan?: an NEG approach with a covariance structure analysis," ERSA conference papers ersa12p430, European Regional Science Association.
  2. Ryusuke Ihara, 2011. "Agglomeration with the pros and cons of labor heterogeneity," ERSA conference papers ersa11p528, European Regional Science Association.
  3. Dirk Dohse & Robert Gold, 2014. "Determining the Impact of Cultural Diversity on Regional Economies in Europe," WWWforEurope Working Papers series 58, WWWforEurope.
  4. Ceren Ozgen & Thomas de Graff, 2013. "Sorting out the impact of cultural diversity on innovative firms. An empirical analysis of Dutch micro-data," Norface Discussion Paper Series, Norface Research Programme on Migration, Department of Economics, University College London 2013012, Norface Research Programme on Migration, Department of Economics, University College London.
  5. Stephan Brunow & Bastian Stockinger, 2013. "Establishments' and Regions' Cultural Diversity as a Source of Innovation: Evidence from Germany," Norface Discussion Paper Series, Norface Research Programme on Migration, Department of Economics, University College London 2013022, Norface Research Programme on Migration, Department of Economics, University College London.
  6. Rune Fitjar & Andrés Rodríguez-Pose, 2013. "The geographical dimension of innovation collaboration: Collaboration and innovation in Norway," ERSA conference papers ersa13p878, European Regional Science Association.
  7. Catherine BAUMONT & Rachel GUILLAIN, 2013. "Interactions, Spillovers De Connaissance Et Croissance Des Villes Européennes - Quel Est Le Rôle De La Géographie, Du Climat Institutionnel Et Des Réseaux Des Firmes Multinationales ?," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 38, pages 161-207.

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