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Agglomeration, innovation and international research mobility

  • Kranich, Jan

This paper discusses a model of the New Economic Geography, in which the seminal core-periphery model of Krugman [Krugman, P., 1991, Increasing returns and economic geography, Journal of Political Economy 99, 483-499.] is extended by endogenous research activities. Beyond the common 'anonymous' consideration of R&D expenditures within fixed costs, this model introduces in an analytically tractable approach vertical product differentiation in combination with a de-integrated R&D sector. In the context of international factor mobility, the destabilizing effects of a mobile scientific workforce are analyzed. Based upon a simple welfare analysis, a consideration of R&D promoting policy instruments and their spatial implications, this paper makes a contribution to the brain-drain debate.

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Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 26 (2009)
Issue (Month): 5 (September)
Pages: 817-830

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Handle: RePEc:eee:ecmode:v:26:y:2009:i:5:p:817-830
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