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Innovation, diffusion and agglomeration

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  • Paul Ormerod
  • Bridget Rosewell

Abstract

Traditional accounts of innovation have tended to neglect the need for change to take place at particular times and in particular places. This paper considers how to move towards a description of innovative processes that take time and place into account. In particular, it looks at the role that cities might play in enabling innovative diffusion. This considers a role for cities that goes beyond the new economic geography, which has described a role for cities in a static maximising framework to look at dynamic impacts. We know that innovation happens particularly in cities and that productivity, which is associated with innovation, is higher in cities. We present a modelling framework that characterises the city as an evolving network and identifies the scope for innovation to diffuse across these networks at any point in time. It shows that diffusion is possible even when shocks reduce the number of connections that agents have.

Suggested Citation

  • Paul Ormerod & Bridget Rosewell, 2009. "Innovation, diffusion and agglomeration," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 18(7), pages 695-706.
    • Handle: RePEc:taf:ecinnt:v:18:y:2009:i:7:p:695-706
    DOI: 10.1080/10438590802564659
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    References listed on IDEAS

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    1. Dosi, Giovanni, 1997. "Opportunities, Incentives and the Collective Patterns of Technological Change," Economic Journal, Royal Economic Society, vol. 107(444), pages 1530-1547, September.
    2. Michael Batty, 2006. "Rank clocks," Nature, Nature, vol. 444(7119), pages 592-596, November.
    3. Metcalfe, J S, 1994. "Evolutionary Economics and Technology Policy," Economic Journal, Royal Economic Society, vol. 104(425), pages 931-944, July.
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    Cited by:

    1. Paul Ormerod & Bridget Rosewell & Greg Wiltshire, 2011. "Network Models of Innovation Process and Policy Implications," Chapters, in: Cristiano Antonelli (ed.), Handbook on the Economic Complexity of Technological Change, chapter 19, Edward Elgar Publishing.

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