Does agglomeration boost innovation? An econometric evaluation
AbstractInnovation is crucial to regional economic competitiveness and to productivity growth. A salient feature of the Indian economy is the geographic concentration of both, economic activity and innovation, as measured by patent activity. Theoretical models argue that the clustering of economic activity within a geographic region results in knowledge spillovers, which in turn drives innovation. The literature also posits that the presence of human capital is critical to the generation of new knowledge. This paper studies how and why economic geography and factor endowments matter for innovative activity â€šÃ„Ã¬ in other words, what is the relationship between human capital and patent generation, and crucially, how is this affected by the spatial distribution of economic activity? The paper analyses patent activity, both applications and grants, between 1995 and 2004 across districts in India. By using an econometric model, it then relates innovation to measures of agglomeration, industry-type and the size distribution of firms, and to the distribution of human capital endowments. It also uses data on employment by industrial activity, productivity and FDI flows. Understanding the magnitude of the effects of economic geography and factor endowments is vital for policy formulation aimed at encouraging innovative activity.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by European Regional Science Association in its series ERSA conference papers with number ersa10p1356.
Date of creation: Sep 2011
Date of revision:
Contact details of provider:
Postal: Welthandelsplatz 1, 1020 Vienna, Austria
Web page: http://www.ersa.org
Other versions of this item:
- Megha Mukim, 2012. "Does Agglomeration Boost Innovation? An Econometric Evaluation," Spatial Economic Analysis, Taylor & Francis Journals, vol. 7(3), pages 357-380, September.
- NEP-ALL-2012-07-29 (All new papers)
- NEP-CSE-2012-07-29 (Economics of Strategic Management)
- NEP-ENT-2012-07-29 (Entrepreneurship)
- NEP-GEO-2012-07-29 (Economic Geography)
- NEP-INO-2012-07-29 (Innovation)
- NEP-SBM-2012-07-29 (Small Business Management)
- NEP-URE-2012-07-29 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Carlino, Gerald A. & Chatterjee, Satyajit & Hunt, Robert M., 2007.
"Urban density and the rate of invention,"
Journal of Urban Economics,
Elsevier, vol. 61(3), pages 389-419, May.
- Audretsch, David B & Feldman, Maryann P, 1998.
"Innovation in Cities: Science-Based Diversity, Specialization and Localized Competition,"
CEPR Discussion Papers
1980, C.E.P.R. Discussion Papers.
- Feldman, Maryann P. & Audretsch, David B., 1999. "Innovation in cities:: Science-based diversity, specialization and localized competition," European Economic Review, Elsevier, vol. 43(2), pages 409-429, February.
- Carlo Menon, 2009.
"Stars and Comets: An Exploration of the Patent Universe,"
SERC Discussion Papers
0037, Spatial Economics Research Centre, LSE.
- Carlo Menon, 2011. "Stars and comets: an exploration of the patent universe," Temi di discussione (Economic working papers) 784, Bank of Italy, Economic Research and International Relations Area.
- Antonio Ciccone & Robert E. Hall, 1996.
"Productivity and the Density of Economic Activity,"
NBER Working Papers
4313, National Bureau of Economic Research, Inc.
- Andres Rodriguez-Pose & Riccardo Crescenzi, 2006.
"R&D, Spillovers, Innovation Systems and the Genesis of Regional Growth in Europe,"
ERSA conference papers
ersa06p371, European Regional Science Association.
- Andrés Rodríguez-Pose & Riccardo Crescenzi, 2006. "R&D, Spillovers, Innovation Systems and the Genesis of Regional Growth in Europe," Bruges European Economic Research Papers 5, European Economic Studies Department, College of Europe.
- A. Rodriguez-Pose & Riccardo Crescenzi, 2006. "R&D, spillovers, innovatoin systems and the genesis of regional growth in Europe," Departmental Working Papers of Economics - University 'Roma Tre' 0067, Department of Economics - University Roma Tre.
- Sourafel Girma & Yundan Gong & Holger Gorg, .
"Foreign Direct Investment, Access to Finance, and Innovation Activity in Chinese Enterprises,"
07/44, University of Nottingham, GEP.
- Sourafel Girma & Yundan Gong & Holger Görg, 2008. "Foreign Direct Investment, Access to Finance, and Innovation Activity in Chinese Enterprises," World Bank Economic Review, World Bank Group, vol. 22(2), pages 367-382, June.
- Sourafel Girma & Yundan Gong & Holger Görg, 2008. "Foreign direct investment, access to finance, and innovation activity in Chinese enterprises," Kiel Working Papers 1400, Kiel Institute for the World Economy.
- Girma, Sourafel & Gong, Yundan & Görg, Holger, 2008. "Foreign direct investment, access to finance, and innovation activity in Chinese enterprises," Open Access Publications from Kiel Institute for the World Economy 28838, Kiel Institute for the World Economy (IfW).
- Thomas Doring & Jan Schnellenbach, 2006.
"What do we know about geographical knowledge spillovers and regional growth?: A survey of the literature,"
Taylor & Francis Journals, vol. 40(3), pages 375-395.
- 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.
- Anselin, Luc & Varga, Attila & Acs, Zoltan, 1997. "Local Geographic Spillovers between University Research and High Technology Innovations," Journal of Urban Economics, Elsevier, vol. 42(3), pages 422-448, November.
- Audretsch, David B, 1998.
"Agglomeration and the Location of Innovative Activity,"
Oxford Review of Economic Policy,
Oxford University Press, vol. 14(2), pages 18-29, Summer.
- Audretsch, David B, 1998. "Agglomeration and the Location of Innovative Activity," CEPR Discussion Papers 1974, C.E.P.R. Discussion Papers.
- John Mullahy, 1997. "Instrumental-Variable Estimation Of Count Data Models: Applications To Models Of Cigarette Smoking Behavior," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 586-593, November.
- Manfred M. Fischer & Attila Varga, 2003. "Spatial knowledge spillovers and university research: Evidence from Austria," The Annals of Regional Science, Springer, vol. 37(2), pages 303-322, 05.
- Shawn Kantor & Alexander Whalley, 2009. "Do Universities Generate Agglomeration Spillovers? Evidence from Endowment Value Shocks," NBER Working Papers 15299, National Bureau of Economic Research, Inc.
- Sherwat E. Ibrahim & M. Hosein Fallah & Richard R. Reilly, 2009. "Localized sources of knowledge and the effect of knowledge spillovers: an empirical study of inventors in the telecommunications industry," Journal of Economic Geography, Oxford University Press, vol. 9(3), pages 405-431, May.
- R. Paci & S. Usai, 2000.
"Externalities, knowledge spillovers and the spatial distribution of innovation,"
Working Paper CRENoS
200002, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- Paci, Raffaele & Usai, Stefano, 2000. "Externalities, Knowledge Spillovers And The Spatial Distribution Of Innovation," ERSA conference papers ersa00p104, European Regional Science Association.
- Eckhardt Bode, 2004. "The spatial pattern of localized R&D spillovers: an empirical investigation for Germany," Journal of Economic Geography, Oxford University Press, vol. 4(1), pages 43-64, January.
- Roderik Ponds & Frank van Oort & Koen Frenken, 2009.
"Innovation, spillovers, and university-industry collaboration: An extended knowledge production function approach,"
Papers in Evolutionary Economic Geography (PEEG)
0903, Utrecht University, Section of Economic Geography, revised Feb 2009.
- Roderik Ponds & Frank van Oort & Koen Frenken, 2010. "Innovation, spillovers and university--industry collaboration: an extended knowledge production function approach," Journal of Economic Geography, Oxford University Press, vol. 10(2), pages 231-255, March.
- Roberta Piergiovanni & Enrico Santarelli, 2001.
"Patents and the Geographic Localization of R&D Spillovers in French Manufacturing,"
Taylor & Francis Journals, vol. 35(8), pages 697-702.
- R. Piergiovanni & E. Santarelli, 1998. "Patents and the Geographic Localization of R&D Spillovers in French Manufacturing," Working Papers 327, Dipartimento Scienze Economiche, Universita' di Bologna.
- 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.
- Jaffe, A.B. & Trajtenberg, M., 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," Papers 14-92, Tel Aviv.
- Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," NBER Working Papers 3993, National Bureau of Economic Research, Inc.
- Acs, Zoltan J. & Anselin, Luc & Varga, Attila, 2002. "Patents and innovation counts as measures of regional production of new knowledge," Research Policy, Elsevier, vol. 31(7), pages 1069-1085, September.
- Tomas Del Barrio-Castro & Jose Garcia-Quevedo, 2005. "Effects of university research on the geography of innovation," Regional Studies, Taylor & Francis Journals, vol. 39(9), pages 1217-1229.
- Fritsch, Michael & Slavtchev, Viktor, 2006.
"Universities and innovation in space,"
Freiberg Working Papers
2006,15, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
- Kelly, Morgan & Hageman, Anya, 1999. " Marshallian Externalities in Innovation," Journal of Economic Growth, Springer, vol. 4(1), pages 39-54, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier).
If references are entirely missing, you can add them using this form.