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The Role of Specialisation and Diversity Externalities in the Agglomeration of Innovative Activities

  • Paci Raffaele
  • Usai Stefano

This paper contributes to the analysis of the process of spatial agglomeration of innovative activities by investigating directly its determinants. Our main purpose is to identify the extent to which the degree of industrial specialisation or diversity in a region may affect the innovative output in a particular local industry. Moreover, we test if any relevant difference arises with respect to the role of diversity in metropolitan areas and in high-tech sectors. The analysis was carried out thanks to an original databank on innovation and production across Italian local labour systems (see http://www.crenos.unica.it). According to the estimation results there are clear signs of the two types of externalities working simultaneously: Marshall externalities (or localisation economies), associated to industrial specialisation within the sector and also within the science base cluster; and Jacobs externalities (or urbanisation economies), associated to the degree of diversity of both the local districts and the science base cluster. Moreover, industrial diversity in the local system plays a different role depending on the dimension of the local system (whether it is a metropolitan area or not) and on the type of industry (high vs. low tech sectors).

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Article provided by Società editrice il Mulino in its journal Rivista italiana degli economisti.

Volume (Year): (2000)
Issue (Month): 2 ()
Pages: 237-268

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Handle: RePEc:mul:jqat1f:doi:10.1427/3676:y:2000:i:2:p:237-268
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  1. Raffaele Paci & Stefano Usai, 1998. "Technological enclaves and industrial districts: An analysis of the regional distribution of innovative activity in Europe," ERSA conference papers ersa98p461, European Regional Science Association.
  2. Paul Krugman, 1992. "Geography and Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262610868, June.
  3. Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
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  6. Roberta Capello, 1999. "Spatial Transfer of Knowledge in High Technology Milieux: Learning Versus Collective Learning Processes," Regional Studies, Taylor & Francis Journals, vol. 33(4), pages 353-365.
  7. Forni, Mario & Paba, Sergio, 2002. "Spillovers and the Growth of Local Industries," Journal of Industrial Economics, Wiley Blackwell, vol. 50(2), pages 151-71, June.
  8. Glenn Ellison & Edward L. Glaeser, 1999. "The Geographic Concentration of Industry: Does Natural Advantage Explain Agglomeration?," Harvard Institute of Economic Research Working Papers 1862, Harvard - Institute of Economic Research.
  9. Brusco, Sebastiano, 1982. "The Emilian Model: Productive Decentralisation and Social Integration," Cambridge Journal of Economics, Oxford University Press, vol. 6(2), pages 167-84, June.
  10. Feldman, Maryann P. & Audretsch, David B., 1999. "Innovation in cities:: Science-based diversity, specialization and localized competition," European Economic Review, Elsevier, vol. 43(2), pages 409-429, February.
  11. Griliches, Zvi, 1990. "Patent Statistics as Economic Indicators: A Survey," Journal of Economic Literature, American Economic Association, vol. 28(4), pages 1661-1707, December.
  12. Gianmarco I. P. Ottaviano & Diego Puga, 1998. "Agglomeration in the Global Economy: A Survey of the 'New Economic Geography'," The World Economy, Wiley Blackwell, vol. 21(6), pages 707-731, 08.
  13. Bartelsman, Eric J & Caballero, Ricardo J & Lyons, Richard K, 1994. "Customer- and Supplier-Driven Externalities," American Economic Review, American Economic Association, vol. 84(4), pages 1075-84, September.
  14. Kelly, Morgan & Hageman, Anya, 1999. " Marshallian Externalities in Innovation," Journal of Economic Growth, Springer, vol. 4(1), pages 39-54, March.
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  16. repec:fth:harver:1473 is not listed on IDEAS
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