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Knowledge spillover processes as complex networks

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  • Konno, Tomohiko

Abstract

We introduce the model of knowledge spillover on networks. Knowledge spillover is a major source of economic growth; and is a representative externality in economic phenomena. We show that the model has the following four characteristics: (1) the long-run growth rate is not relevant to the mean degree, but is determined by the mean degree of the nearest neighbors; (2) the productivity level of a firm is proportional to the degree of the firm; (3) the long-run growth rate increases with the increasing heterogeneity of the network; and (4) of three representative networks, the largest growth rate is in scale-free networks and the least in regular networks.

Suggested Citation

  • Konno, Tomohiko, 2016. "Knowledge spillover processes as complex networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 462(C), pages 1207-1214.
  • Handle: RePEc:eee:phsmap:v:462:y:2016:i:c:p:1207-1214
    DOI: 10.1016/j.physa.2016.06.124
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