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Culture and diversity in knowledge creation

  • Berliant, Marcus
  • Fujita, Masahisa

Is the paradise of effortless communication the ideal environment for knowledge creation? Or, can the development of local culture in regions raise knowledge productivity compared to a single region with a unitary culture? In other words, can a real technological increase in the cost of collaboration and the cost of public knowledge flow between regions, resulting in cultural differentiation between regions, increase welfare? In our framework, a culture is a set of ideas held exclusively by residents of a location. In general in our model, the equilibrium path generates separate cultures in different regions. When we compare this to the situation where all workers are resident in one region, R & D workers become too homogeneous and there is only one culture. As a result, equilibrium productivity in the creation of new knowledge is lower relative to the situation when there are multiple cultures and workers are more diverse.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 27997.

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Date of creation: 09 Jan 2011
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Handle: RePEc:pra:mprapa:27997
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  1. Berliant, Marcus & Fujita, Masahisa, 2009. "The dynamics of knowledge diversity and economic growth," MPRA Paper 16475, University Library of Munich, Germany.
  2. Ana Rute Cardoso & Paulo Guimarães & Klaus F. Zimmermann, 2010. "Trends in economic research: An international perspective," UFAE and IAE Working Papers 832.10, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  3. Marcus Berliant & Robert R Reed & Ping Wang, 2003. "Knowledge Exchange, Matching, and Agglomeration," Levine's Bibliography 666156000000000395, UCLA Department of Economics.
  4. Marcus Berliant & Masahisa Fujita, 2004. "Knowledge Creation as a Square Dance on the Hilbert Cube," Game Theory and Information 0401004, EconWPA, revised 27 Jan 2004.
  5. Rene Belderbos & Bart Leten & Shinya Suzuki, 2009. "Does Excellence in Academic Research Attract Foreign R&D?," Global COE Hi-Stat Discussion Paper Series gd09-079, Institute of Economic Research, Hitotsubashi University.
  6. Duranton, Gilles & Puga, Diego, 2000. "Nursery Cities: Urban Diversity, Process Innovation, and the Life-Cycle of Products," CEPR Discussion Papers 2376, C.E.P.R. Discussion Papers.
  7. Berliant, Marcus & Fujita, Masahisa, 2007. "Dynamics of knowledge creation and transfer: The two person case," MPRA Paper 4973, University Library of Munich, Germany.
  8. David Card, 2007. "How Immigration Affects U.S. Cities," CReAM Discussion Paper Series 0711, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  9. Bellini, Elena & Ottaviano, Gianmarco I. P. & Pinelli, Dino & Prarolo, Giovanni, 2008. "Cultural diversity and economic performance: Evidence from European regions," HWWI Research Papers 3-14, Hamburg Institute of International Economics (HWWI).
  10. Paola Sapienza & Luigi Zingales & Luigi Guiso, 2006. "Does Culture Affect Economic Outcomes?," NBER Working Papers 11999, National Bureau of Economic Research, Inc.
  11. Ottaviano, Gianmarco & Peri, Giovanni, 2008. "Immigration and National Wages: Clarifying the Theory and the Empirics," CEPR Discussion Papers 6916, C.E.P.R. Discussion Papers.
  12. Agrawal, Ajay & Kapur, Devesh & McHale, John & Oettl, Alexander, 2011. "Brain drain or brain bank? The impact of skilled emigration on poor-country innovation," Journal of Urban Economics, Elsevier, vol. 69(1), pages 43-55, January.
  13. William R. Kerr & William F. Lincoln, 2010. "The Supply Side of Innovation: H-1B Visa Reforms and U.S. Ethnic Invention," Journal of Labor Economics, University of Chicago Press, vol. 28(3), pages 473-508, 07.
  14. Ottaviano, Gianmarco & Peri, Giovanni, 2004. "The Economic Value of Cultural Diversity: Evidence from US Cities," CEPR Discussion Papers 4233, C.E.P.R. Discussion Papers.
  15. Helsley, Robert W. & Strange, William C., 2004. "Knowledge barter in cities," Journal of Urban Economics, Elsevier, vol. 56(2), pages 327-345, September.
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