Simulating the prospects of technological catching up
Local increasing returns associated with static and dynamic scale effects, knowledge spillovers, polarisation effects and the distance that separates different regions are among the most important driving forces behind the dynamics of economic and technological convergence. This paper puts forward a computational simulation model that seeks to integrate these factors. The modelling exercise was designed to achieve a better understanding of the relationship between the aspects underlying the specific trajectories of regional technological accumulation and the aggregate convergence/divergence patterns stemming from these trajectories. Analysis of the simulation’s results allows us to draw several conclusions. Firstly, it is shown that the opportunities for interaction and the resulting knowledge spillovers are a necessary but not sufficient condition for convergence. Moreover, up to a certain point, an increase in the opportunities for interaction between regions may lead to further divergence. Secondly, when spatial friction in the interactions is either relatively low or high, regions which could be “losers” for a given initial distribution of technological capabilities may become “winners” for another one (“history matters”). Conversely, for intermediate levels of spatial friction leading to central polarisation, history is largely irrelevant – irrespective of the initial space distribution of technological capability and sequence of chance events, a polarised centre-periphery pattern emerges. Finally, when spatial distance imposes high friction on interactions between regions, and when they do not have to be very similar in their levels of technological capabilities in order to learn from each other, regions in the core of “continental masses” benefit in terms of increased technological capability (“space matters”).
|Date of creation:||2005|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: https://aquila1.iseg.ulisboa.pt/aquila/departamentos/EC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gouyette, Claudine & Neven, Damien J, 1994.
"Regional Convergence in the European Community,"
CEPR Discussion Papers
914, C.E.P.R. Discussion Papers.
- Damien NEVEN & Claudine GOUYETTE, 1993. "Regional Convergence in the European Comunity," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 9311, Université de Lausanne, Faculté des HEC, DEEP.
- repec:dgr:tuecis:981 is not listed on IDEAS
- Aadne Cappelen & Jan Fagerberg & Bart Verspagen, 1999. "Lack of regional convergence," Working Papers Archives 1999001, Centre for Technology, Innovation and Culture, University of Oslo.
- Paul M Romer, 1999.
"Increasing Returns and Long-Run Growth,"
Levine's Working Paper Archive
2232, David K. Levine.
- Barro, Robert J & Sala-i-Martin, Xavier, 1992.
Journal of Political Economy,
University of Chicago Press, vol. 100(2), pages 223-51, April.
- Barro, R.J. & Sala-I-Martin, X., 1991. "Convergence," Papers 645, Yale - Economic Growth Center.
- Barro, Robert J. & Sala-i-Martin, Xavier, 1992. "Convergence," Scholarly Articles 3451299, Harvard University Department of Economics.
- Barro, R.J. & Sala-I-Martin, X., 1991. "Convergence Across States and Regions," Papers 629, Yale - Economic Growth Center.
- Jan Fagerberg, 1987.
"A technology gap approach to why growth rates differ,"
Working Papers Archives
1987002, Centre for Technology, Innovation and Culture, University of Oslo.
- Fagerberg, Jan, 1987. "A technology gap approach to why growth rates differ," Research Policy, Elsevier, vol. 16(2-4), pages 87-99, August.
- Verspagen, Bart & Maurseth, Per Botolf, 1998. "Knowledge Spillovers in Europe and its Consequences for Systems of Innovation," Working Papers 98.1, Eindhoven Center for Innovation Studies.
- Fagerberg, Jan, 1994. "Technology and International Differences in Growth Rates," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1147-75, September.
- Jan Fagerberg & Bart Verspagen & Marjolein Cani�ls, 1997. "Technology, Growth and Unemployment across European Regions," Regional Studies, Taylor & Francis Journals, vol. 31(5), pages 457-466.
- Robert J. Barro & Xavier Sala-i-Martin, 1991.
"Convergence across States and Regions,"
Brookings Papers on Economic Activity,
Economic Studies Program, The Brookings Institution, vol. 22(1), pages 107-182.
When requesting a correction, please mention this item's handle: RePEc:ise:isegwp:wp122005. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vitor Escaria)
If references are entirely missing, you can add them using this form.