IDEAS home Printed from https://ideas.repec.org/a/ibn/ijefaa/v15y2023i12p53.html
   My bibliography  Save this article

Why is Technological Innovation Locally Concentrated? A Theoretical Review

Author

Listed:
  • Bi Goli Jean Jacques Iritié

Abstract

In this paper, we provide a theoretical overview of the reasons behind the concentration of technological innovation in some areas. To do so, we first examine the issues of innovation as established by macroeconomic theories of growth then we discuss the incentives for its production according to market structures. Then, using an approach based on the economics and management of knowledge, we analyze the mechanisms and dynamics of the co-localization of innovative industries through the results of theoretical models of industrial organization. Specifically, we show that the localization of innovation is favored by the presence of knowledge externalities, especially of a tacit nature, and by the sharing of indivisible costs (e.g., technology platforms, clean rooms, road networks, etc.). It is also explained by strategic gains associated with R&D cooperation, such as informational incentives linked to the local ecosystem and the improved performance of technological agreements between firms belonging to the same epistemic community and located within an innovation cluster.

Suggested Citation

  • Bi Goli Jean Jacques Iritié, 2023. "Why is Technological Innovation Locally Concentrated? A Theoretical Review," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 15(12), pages 1-53, December.
    • Handle: RePEc:ibn:ijefaa:v:15:y:2023:i:12:p:53
    as

    Download full text from publisher

    File URL: https://ccsenet.org/journal/index.php/ijef/article/download/0/0/49457/53407
    Download Restriction: no
    File URL: https://ccsenet.org/journal/index.php/ijef/article/view/0/49457
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1993. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 577-598.
    2. Philippe Martin & Gianmarco I.P. Ottaviano, 2021. "Growing locations: Industry location in a model of endogenous growth," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 1, pages 3-24, World Scientific Publishing Co. Pte. Ltd..
    3. Patrick Cohendet & Patrick Llerena, 1999. "La conception de la firme comme processeur de connaissances," Revue d'Économie Industrielle, Programme National Persée, vol. 88(1), pages 211-235.
    4. Marie-Laure Cabon-Dhersin, 2007. "Le laboratoire commun de recherche : quelles implications pour une politique de la concurrence ?," Recherches économiques de Louvain, De Boeck Université, vol. 73(1), pages 77-93.
    5. Amir, Rabah, 2000. "Modelling imperfectly appropriable R&D via spillovers," International Journal of Industrial Organization, Elsevier, vol. 18(7), pages 1013-1032, October.
    6. Dasgupta, Partha & Stiglitz, Joseph, 1980. "Industrial Structure and the Nature of Innovative Activity," Economic Journal, Royal Economic Society, vol. 90(358), pages 266-293, June.
    7. Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680, Decembrie.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Iritié, B. G. Jean-Jacques, 2014. "Enjeux des politiques industrielles basées sur les clusters d'innovation: cas des pôles de compétitivité [Issues of Innovative Clusters-based Industrial Policy: Case of Pole of Competitiveness]," MPRA Paper 54429, University Library of Munich, Germany.
    2. B.G. Jean Jacques Iritié, 2018. "Economic issues of innovation clusters-based industrial policy: a critical overview," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 20(3), pages 286-307.
    3. Marta Aloi & Joanna Poyago-Theotoky & Frederic Tournemaine, 2018. "Growth and the geography of knowledge," Discussion Papers 2018-04, University of Nottingham, GEP.
    4. Marta Aloi & Joanna Poyago-Theotoky & Frédéric Tournemaine, 2022. "The Geography of Knowledge and R&D-led Growth [Real effects ofacademic research: comment]," Journal of Economic Geography, Oxford University Press, vol. 22(6), pages 1149-1190.
    5. Colin Davis, 2013. "Regional integration and innovation offshoring with occupational choice and endogenous growth," Journal of Economics, Springer, vol. 108(1), pages 59-79, January.
    6. Klaus Desmet & Esteban Rossi‐Hansberg, 2010. "On Spatial Dynamics," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 43-63, February.
    7. Martin Andersson & Börje Johansson, 2008. "Innovation Ideas and Regional Characteristics: Product Innovations and Export Entrepreneurship by Firms in Swedish Regions," Growth and Change, Wiley Blackwell, vol. 39(2), pages 193-224, June.
    8. Alberto Franco Pozzolo, 2004. "Research and Development, Regional Spillovers and the Location of Economic Activities," Manchester School, University of Manchester, vol. 72(4), pages 463-482, July.
    9. Dirk Dohse & Rajeev K. Goel & Michael A. Nelson, 2019. "What induces firms to license foreign technologies? International survey evidence," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 40(7), pages 799-814, October.
    10. Karolina Ekholm & Katariina Hakkala, 2007. "Location of R&D and High-Tech Production by Vertically Integrated Multinationals," Economic Journal, Royal Economic Society, vol. 117(518), pages 512-543, March.
    11. Cui, Wenyue, 2025. "Shadow and spillover: The influence of neighboring innovative cities on regional innovation growth," China Economic Review, Elsevier, vol. 90(C).
    12. MAULEON, Ana & SEMPERE-MONERRIS, José & VANNETELBOSCH, Vincent J., 2004. "R&D networks among unionized firms," LIDAM Discussion Papers CORE 2004071, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    13. Martin, Philippe, 1999. "Public policies, regional inequalities and growth," Journal of Public Economics, Elsevier, vol. 73(1), pages 85-105, July.
    14. Iammarino, Simona & McCann, Philip, 2006. "The structure and evolution of industrial clusters: Transactions, technology and knowledge spillovers," Research Policy, Elsevier, vol. 35(7), pages 1018-1036, September.
    15. Philippe Martin, 2000. "The Role of Public Policy in the Process of Regional Convergence," SciencePo Working papers hal-01011336, HAL.
    16. Kranich, Jan, 2009. "Agglomeration, innovation and international research mobility," Economic Modelling, Elsevier, vol. 26(5), pages 817-830, September.
    17. Xavier Vives, 2008. "Innovation And Competitive Pressure," Journal of Industrial Economics, Wiley Blackwell, vol. 56(3), pages 419-469, December.
    18. Henderson, J. Vernon & Thisse, Jacques-François, 2024. "Urban and spatial economics after 50 years," Journal of Urban Economics, Elsevier, vol. 144(C).
    19. Richard E. Baldwin & Philippe Martin & Gianmarco I. P. Ottaviano, 2021. "Global Income Divergence, Trade, and Industrialization: The Geography of Growth Take-Offs," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 2, pages 25-57, World Scientific Publishing Co. Pte. Ltd..
    20. Victor Cui & Rajneesh Narula & Dana Minbaeva & Ilan Vertinsky, 2022. "Towards integrating country- and firm-level perspectives on intellectual property rights," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(9), pages 1880-1894, December.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibn:ijefaa:v:15:y:2023:i:12:p:53. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.