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Endogenous Knowledge Spillovers and Labor Mobility in Industrial Clusters

  • Antonio Guarino
  • Piero Tedeschi

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.

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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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Paper provided by Università degli Studi di Milano-Bicocca, Dipartimento di Statistica in its series Working Papers with number 20060507.

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Length: 43 pages
Date of creation: May 2006
Date of revision:
Handle: RePEc:mis:wpaper:20060507
Contact details of provider: Postal: Via Bicocca degli Arcimboldi 8, 20126 Milano
Web page: http://www.statistica.unimib.it

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  1. Jaffe, A.B. & Trajtenberg, M., 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," Papers 14-92, Tel Aviv.
  2. Marshall, Alfred, 1890. "The Principles of Economics," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number marshall1890.
  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. Hans Gersbach & Armin Schmutzler, 2003. "Endogenous Technological Spillovers: Causes and Consequences," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 12(2), pages 179-205, 06.
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