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Culture and diversity in knowledge creation

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  • Berliant, Marcus
  • Fujita, Masahisa

Abstract

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.

Suggested Citation

  • Berliant, Marcus & Fujita, Masahisa, 2011. "Culture and diversity in knowledge creation," MPRA Paper 27997, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:27997
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    References listed on IDEAS

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    Cited by:

    1. Masahisa Fujita, 2015. "Diversity and Culture in Knowledge Creation in Cities," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2015(1), pages 101-103.
    2. Lorenzo Cassi & Anne Plunket, 2014. "Proximity, network formation and inventive performance: in search of the proximity paradox," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(2), pages 395-422, September.
    3. Catherine BAUMONT & Rachel GUILLAIN, 2013. "Interactions, Spillovers De Connaissance Et Croissance Des Villes Européennes - Quel Est Le Rôle De La Géographie, Du Climat Institutionnel Et Des Réseaux Des Firmes Multinationales ?," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 38, pages 161-207.
    4. Trax, Michaela & Brunow, Stephan & Suedekum, Jens, 2015. "Cultural diversity and plant-level productivity," Regional Science and Urban Economics, Elsevier, vol. 53(C), pages 85-96.
    5. Ryusuke Ihara & Shizu Yamamoto, 2012. "Does labor diversity cause agglomeration in Japan?: an NEG approach with a covariance structure analysis," ERSA conference papers ersa12p430, European Regional Science Association.
    6. NAGAMACHI Kohei, 2015. "Team Production and the Allocation of Creativity across Global and Local Sectors," Discussion papers 15111, Research Institute of Economy, Trade and Industry (RIETI).
    7. Laurent Bergé & Iris Wanzenböck & Thomas Scherngell, 2015. "Centrality of regions in R&D networks: Conceptual clarifications and a new measure," Cahiers du GREThA 2015-31, Groupe de Recherche en Economie Théorique et Appliquée.
    8. Stephan Brunow & Bastian Stockinger, 2013. "Establishments' and Regions' Cultural Diversity as a Source of Innovation: Evidence from Germany," Norface Discussion Paper Series 2013022, Norface Research Programme on Migration, Department of Economics, University College London.
    9. Eduardo A. Haddad & Jesus P. Mena-Chalco, Otávio J.G. Sidone, 2016. "Produção Científica e Redes de Colaboração dos Docentes Vinculados aos Programas de Pós-graduação em Economia no Brasil," Working Papers, Department of Economics 2016_10, University of São Paulo (FEA-USP).
    10. Tadashi Yagi, 2014. "Knowledge Creation by Consumers and Optimal Strategies of Firms," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 5(3), pages 585-596, September.
    11. HAMAGUCHI Nobuaki & KONDO Keisuke, 2015. "Fresh Brain Power and Quality of Innovation in Cities: Evidence from the Japanese patent database," Discussion papers 15108, Research Institute of Economy, Trade and Industry (RIETI).
    12. Nagamachi, Kohei, 2015. "Team Production and the Allocation of Creativity across Global and Local Sectors," MPRA Paper 63422, University Library of Munich, Germany.
    13. Rune Fitjar & Andrés Rodríguez-Pose, 2013. "The geographical dimension of innovation collaboration: Collaboration and innovation in Norway," ERSA conference papers ersa13p878, European Regional Science Association.
    14. Ryusuke Ihara & Shizu Yamamoto, 2016. "Role of tolerance in communication with diverse people," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 191-202, January.
    15. SAITO Yukiko & YAMAUCHI Isamu, 2015. "Inventors' Mobility and Organizations' Productivity: Evidence from Japanese rare name inventors," Discussion papers 15128, Research Institute of Economy, Trade and Industry (RIETI).
    16. Dirk Dohse & Robert Gold, 2014. "Determining the Impact of Cultural Diversity on Regional Economies in Europe," WWWforEurope Working Papers series 58, WWWforEurope.
    17. Ceren Ozgen & Thomas de Graff, 2013. "Sorting out the impact of cultural diversity on innovative firms. An empirical analysis of Dutch micro-data," Norface Discussion Paper Series 2013012, Norface Research Programme on Migration, Department of Economics, University College London.
    18. Ryusuke Ihara, 2011. "Agglomeration with the pros and cons of labor heterogeneity," ERSA conference papers ersa11p528, European Regional Science Association.
    19. Fumihiko Isada & Yuriko Isada, 2015. "Trans-nationalisation of a main office in a multinational firm," International Journal of Business and Management, International Institute of Social and Economic Sciences, vol. 3(4), pages 15-40, November.
    20. repec:bla:manchs:v:85:y:2017:i:6:p:744-764 is not listed on IDEAS

    More about this item

    Keywords

    knowledge creation; knowledge diversity; ideas and culture;

    JEL classification:

    • Z1 - Other Special Topics - - Cultural Economics
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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