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Endogenous Knowledge Spillovers and Labor Mobility in Industrial Clusters

Author

Listed:
  • Antonio Guarino
  • Piero Tedeschi

Abstract

Knowledge spillovers and labor mobility in industrial clusters are interrelated phenomena. A firm's knowledge is embodied in the entrepreneur and in the specialized workers. Knowledge can spill over from one firm to another through two channels: direct revelation from one entrepreneur to another and labor mobility. We show that, in equilibrium, an entrepreneur can disclose information to another in order to avoid labor poaching. The incentive of firms to disclose information voluntarily is one of the novel contributions of our paper. In the absence of information disclosure, spillovers can still occur through labor poaching. Labor poaching and voluntary disclosure of information can also occur simultaneously in equilibrium. We also provide a rationale for the localized character of the spillovers and for the limited geographical extensions of industrial clusters.

Suggested Citation

  • Antonio Guarino & Piero Tedeschi, 2006. "Endogenous Knowledge Spillovers and Labor Mobility in Industrial Clusters," Working Papers 20060507, Università degli Studi di Milano-Bicocca, Dipartimento di Statistica.
  • Handle: RePEc:mis:wpaper:20060507
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    File URL: http://www.statistica.unimib.it/utenti/WorkingPapers/WorkingPapers/20060507.pdf
    File Function: First version, May 2006
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    References listed on IDEAS

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    1. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1993. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," The Quarterly Journal of Economics, Oxford University Press, pages 577-598.
    2. Hans Gersbach & Armin Schmutzler, 2003. "Endogenous Technological Spillovers: Causes and Consequences," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 12(2), pages 179-205, June.
    3. Rosenthal, Stuart S. & Strange, William C., 2004. "Evidence on the nature and sources of agglomeration economies," Handbook of Regional and Urban Economics,in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 49, pages 2119-2171 Elsevier.
    4. Wagner, Alfred, 1891. "Marshall's Principles of Economics," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 5, pages 319-338.
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    Cited by:

    1. Neil Foster-McGregor & Johannes Pöschl, 2016. "Productivity effects of knowledge transfers through labour mobility," Journal of Productivity Analysis, Springer, vol. 46(2), pages 169-184, December.
    2. S Geisendorf, 2009. "The Influence of Innovation and Imitation on Economic Performance," Economic Issues Journal Articles, Economic Issues, vol. 14(1), pages 65-94, March.

    More about this item

    Keywords

    Spillover; Industrial Cluster; Labor Mobility;

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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