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Micro foundations for knowledge spillovers in spatial equilibrium models

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  • Stein Ostbye

    ()

  • Sylvain Barde

Abstract

Knowledge spillovers have recently been analysed by Barde (2009) and Ostbye (2010) in a spatial general equilibrium framework. Both studies lack explicit micro foundations for the spillovers – spillovers just take place and depend on firm density. The models must therefore be seen as reduced forms that may potentially be consistent with several structural interpretations. In this paper, the aim is to go some way in offering plausible micro foundations. We consider two alternatives: knowledge dissemination through knowledge embodied in labour moving between firms following Combes and Duranton (2006) and knowledge creation and dissemination through research and development (R&D) following d’Asprémont and Jacquemin (1988).

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa10p794.

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Date of creation: Sep 2011
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Handle: RePEc:wiw:wiwrsa:ersa10p794

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  1. Rivera-Batiz, Francisco L., 1988. "Increasing returns, monopolistic competition, and agglomeration economies in consumption and production," Regional Science and Urban Economics, Elsevier, vol. 18(1), pages 125-153, February.
  2. Scotchmer, Suzanne & Thisse, Jacques-Francois, 1992. "Space and Competition: A Puzzle," The Annals of Regional Science, Springer, vol. 26(3), pages 269-86, September.
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