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original: Knowledge diffusion and the development of regionsKnowledge diffusion and the development of regions


  • Lucas Bretschger

    () (Institute for Empirical Research in Economics, University of ZØrich, BlØmlisalpstrasse 10, CH-8006 ZØrich, Switzerland)


The economic prosperity of a region is largely dependent on the accumulation and diffusion of knowledge. In this paper, the scale effects as well as the resource reallocation effects of intra- and interregional knowledge transmission are analysed. Within a model, the optimal levels of knowledge diffusion are calculated. It is also shown that knowledge diffusion becomes more important if regions are more integrated in interregional goods trade. Free trade in goods can harm the development of a region if the interregional knowledge diffusion is not intensive enough.

Suggested Citation

  • Lucas Bretschger, 1999. "original: Knowledge diffusion and the development of regionsKnowledge diffusion and the development of regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 33(3), pages 251-268.
  • Handle: RePEc:spr:anresc:v:33:y:1999:i:3:p:251-268
    Note: Received: October 1996 / Accepted: December 1997

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    Cited by:

    1. Kowalewski, Julia, 2010. "Specialisation and employment development in Germany: Analysis at regional level," HWWI Research Papers 1-28, Hamburg Institute of International Economics (HWWI).

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