Estimates of the impact of static and dynamic knowledge spillovers on regional factor productivity
AbstractWe develop an empirical approach to examine static and dynamic knowledge externalities in the context of a regional total factor productivity relationship. Static externalities refer to current period scale or industry-size effects which have been labeled localization externalities or region-size effects known as agglomeration externalities. Dynamic externalities refer to the relationship between accumulated or prior period knowledge and current levels of innovation, where past learning-by-doing makes innovation positively related to cumulative production over time. Our empirical specification allows for the presence of both static and dynamic externalities, and provides a way to assess the relative magnitude of spillovers associated with spillovers from these two types of knowledge externalities. The magnitude of own-region impacts and other-region (spillovers) can be assessed using scalar summary measures of the own- and cross-partial derivatives from the model. We find evidence supporting the presence of dynamic externalities as well as static, and our estimates suggest that dynamic externalities may have a larger magnitude of impact than static externalities.
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Bibliographic InfoPaper provided by European Regional Science Association in its series ERSA conference papers with number ersa11p31.
Date of creation: Sep 2011
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- James P. LeSage & Manfred M. Fischer, 2012. "Estimates of the Impact of Static and Dynamic Knowledge Spillovers on Regional Factor Productivity," International Regional Science Review, , vol. 35(1), pages 103-127, January.
- NEP-ALL-2011-11-14 (All new papers)
- NEP-CSE-2011-11-14 (Economics of Strategic Management)
- NEP-EFF-2011-11-14 (Efficiency & Productivity)
- NEP-GEO-2011-11-14 (Economic Geography)
- NEP-KNM-2011-11-14 (Knowledge Management & Knowledge Economy)
- NEP-URE-2011-11-14 (Urban & Real Estate Economics)
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