A Model of the Learning Process with Local Knowledge Externalities Illustrated with an Integrated Graphical Framework
We present a unified graphical framework accounting for the nature and impact of spillover effects. The dynamics of the learning process with a specific spillover transfer mechanism can be illustrated by recurring to this four-quadrant picture. In particular, a whole cycle of technological learning is explained with help of such a graphical representation of the basic learning process in the presence of knowledge spillovers. We hypothesize two different functional specifications of spillover exchanges among firms within a local innovation system. Each conceivable shape for the knowledge transfer relationship among firms expresses a possible mode and intensity of information processing arising from technology spillovers. A general proposition regarding the relative efficiency of the two alternative formal models with spillovers effects is derived. The basic models with spillover effects are then extended in several relevant directions.
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- Paul M Romer, 1999.
"Endogenous Technological Change,"
Levine's Working Paper Archive
2135, David K. Levine.
- Antonelli, Cristiano, 2001. "The Microeconomics of Technological Systems," OUP Catalogue, Oxford University Press, number 9780199245536, March.
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