IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

New Economic Geography reloaded: Localized knowledge spillovers and the geography of innovation

  • Christ, Julian P.

Despite the increasing and newly inspired interests in geographical economics and industry location theory, the majority of existing New Economic Geography models ignores the interdependence between spatial concentration, knowledge diffusion, invention and growth. For this reason, the paper exclusively surveys the emergence and development of New Economic Geography Growth models in the context of the existing geography of innovation literature. The first part of the paper contributes with a classification of first- and second-nature causes of agglomeration and clustering. This part will also discriminate between static and dynamic externalities. Therefore, the chapter particularly compiles the differences between urbanization and localization externalities, and MAR, Jacobian and Porter externalities. A second concern of the paper is to highlight the modeling peculiarities of New Economic Geography Growth models. Besides approaching the main differences and similarities between first- and second-generation NEG models, the paper additionally reviews and discloses complemental contributions to the geography of innovation literature in the course of time. For this purpose, the paper examines in a meta-study 61 empirical contributions, which are related to the knowledge production function, the concept of spatial dependence and knowledge spillovers. The meta-study is complemented by bibliometric research. The paper ultimately concludes that the empirical studies that are related to the concept of (localized) knowledge spillovers and spatial association have caused a fundamental upgrading of the New Economic Geography literature towards non-pecuniary externalities. Consequently, the paper shows that recently developed second-generation NEG models offer alternative backward and forward linkages, which similarly determine centripetal and centrifugal forces, circular causality and finally the geography of innovation.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by University of Hohenheim, Center for Research on Innovation and Services (FZID) in its series FZID Discussion Papers with number 01-2009.

in new window

Date of creation: 2009
Date of revision:
Handle: RePEc:zbw:fziddp:200901
Contact details of provider: Postal:
D-70593 Stuttgart

Phone: 0711-459-22476
Fax: 0711-459-23360
Web page:

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Olof Ejermo, 2002. "Knowledge Production in Swedish Functional Regions 1993-1999," KITeS Working Papers 140, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Feb 2003.
  2. Stefano Breschi & Francesco Lissoni, 2001. "Knowledge spillovers and local innovation systems: a critical survey," LIUC Papers in Economics 84, Cattaneo University (LIUC).
  3. Joan Trullén & Rafael Boix, 2005. "Knowledge, networks of cities and growth in regional urban systems," Working Papers wpdea0504, Department of Applied Economics at Universitat Autonoma of Barcelona.
  4. Fabio Cerina & Francesco Pigliaru, 2007. "Agglomeration and Growth in the NEG: A Critical Assessment," Chapters, in: New Directions in Economic Geography, chapter 5 Edward Elgar Publishing.
  5. Robert Dekle, 2002. "Industrial Concentration And Regional Growth: Evidence From The Prefectures," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 310-315, May.
  6. Baldwin, Richard & Martin, Philippe, 2003. "Agglomeration and Regional Growth," CEPR Discussion Papers 3960, C.E.P.R. Discussion Papers.
  7. Baptista, Rui & Swann, Peter, 1998. "Do firms in clusters innovate more?," Research Policy, Elsevier, vol. 27(5), pages 525-540, September.
  8. Baldwin, Richard E. & Forslid, Rikard, 2000. "Trade liberalisation and endogenous growth: A q-theory approach," Journal of International Economics, Elsevier, vol. 50(2), pages 497-517, April.
  9. Frank G. van Oort & Oedzge A. L. C. Atzema, 2004. "On the conceptualization of agglomeration economies: The case of new firm formation in the Dutch ICT sector," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 38(2), pages 263-290, 06.
  10. Martin Andersson & Urban Gråsjö, 2009. "Spatial dependence and the representation of space in empirical models," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(1), pages 159-180, March.
  11. Audretsch, David B, 1998. "Agglomeration and the Location of Innovative Activity," Oxford Review of Economic Policy, Oxford University Press, vol. 14(2), pages 18-29, Summer.
  12. Baldwin, Richard E & Martin, Philippe & Ottaviano, Gianmarco I P, 2001. "Global Income Divergence, Trade, and Industrialization: The Geography of Growth Take-Offs," Journal of Economic Growth, Springer, vol. 6(1), pages 5-37, March.
  13. Andres Rodriguez-Pose & Riccardo Crescenzi, 2006. "R&D, Spillovers, Innovation Systems and the Genesis of Regional Growth in Europe," ERSA conference papers ersa06p371, European Regional Science Association.
  14. Ron A. Boschma & Anet B.R. Weterings, 2005. "The effect of regional differences on the performance of software firms in the Netherlands," Papers in Evolutionary Economic Geography (PEEG) 0506, Utrecht University, Section of Economic Geography, revised Jan 2005.
  15. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
  16. Sonia Deidda & Raffaele Paci & Stefano Usai, 2003. "Spatial Externalities and Local Economic Growth," ERSA conference papers ersa03p81, European Regional Science Association.
  17. Bart Verspagen & Marjolein C.J. Cani, ls, 2001. "Barriers to knowledge spillovers and regional convergence in an evolutionary model," Journal of Evolutionary Economics, Springer, vol. 11(3), pages 307-329.
  18. Baldwin, Richard & Braconier, Henrik & Forslid, Rikard, 1999. "Multinationals, Endogenous Growth and Technological Spillovers: Theory and Evidence," CEPR Discussion Papers 2155, C.E.P.R. Discussion Papers.
  19. repec:ebl:ecbull:v:15:y:2005:i:17:p:1-8 is not listed on IDEAS
  20. Stefano Breschi & Francesco Lissoni, 2003. "Mobility and Social Networks: Localised Knowledge Spillovers Revisited," KITeS Working Papers 142, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Mar 2003.
  21. Guadalupe Serrano & Bernardí Cabrer, 2004. "The effect of knowledge spillovers on productivity growth inequalities in Spanish regions," Environment and Planning A, Pion Ltd, London, vol. 36(4), pages 731-753, April.
  22. Andrés Rodríguez-Pose & Riccardo Crescenzi, 2008. "Mountains in a flat world: why proximity still matters for the location of economic activity," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 1(3), pages 371-388.
  23. Blien, Uwe & Suedekum, Jens, 2005. "Local economic structure and industry development in Germany, 1993-2001," IAB Discussion Paper 200501, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  24. Pierre-Philippe Combes & Thierry Magnac & Jean-Marc Robin, 2004. "The dynamics of local employment in France," Research Unit Working Papers 0402, Laboratoire d'Economie Appliquee, INRA.
  25. Combes, Pierre-Philippe & Overman, Henry G., 2004. "The spatial distribution of economic activities in the European Union," 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 64, pages 2845-2909 Elsevier.
  26. Baldwin, Richard & Forslid, Rikard, 1997. "The Core-Periphery Model and Endogenous Growth," CEPR Discussion Papers 1749, C.E.P.R. Discussion Papers.
  27. Roland Andersson & John M. Quigley & Mats Wilhelmsson, 2005. "Agglomeration and the spatial distribution of creativity," Papers in Regional Science, Wiley Blackwell, vol. 84(3), pages 445-464, 08.
  28. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
  29. Audretsch, David B & Feldman, Maryann P, 1998. "Innovation in Cities: Science-Based Diversity, Specialization and Localized Competition," CEPR Discussion Papers 1980, C.E.P.R. Discussion Papers.
  30. Cécile BATISSE, 2001. "Dynamic externalities and local growth:A panel data analysis applied to Chinese provinces," Working Papers 200112, CERDI.
  31. Audretsch, David B. & Feldman, Maryann P., 2004. "Knowledge spillovers and the geography of innovation," 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 61, pages 2713-2739 Elsevier.
  32. Riccardo Crescenzi & Andrés Rodriguez-Pose & Michael Storper, 2007. "The territorial dynamics of innovation: a Europe-United States comparative analysis," Journal of Economic Geography, Oxford University Press, vol. 7(6), pages 673-709, November.
  33. Zoltan Acs & Catherine Armington, 2004. "Employment Growth and Entrepreneurial Activity in Cities," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 911-927.
  34. Acs, Zoltan J. & Anselin, Luc & Varga, Attila, 2002. "Patents and innovation counts as measures of regional production of new knowledge," Research Policy, Elsevier, vol. 31(7), pages 1069-1085, September.
  35. Claudia Werker & Suma Athreye, 2004. "Marshall’s disciples: knowledge and innovation driving regional economic development and growth," Journal of Evolutionary Economics, Springer, vol. 14(5), pages 505-523, December.
  36. Bradley, Rebecca & Gans, Joshua S, 1998. "Growth in Australian Cities," The Economic Record, The Economic Society of Australia, vol. 74(226), pages 266-78, September.
  37. Thomas Doring & Jan Schnellenbach, 2006. "What do we know about geographical knowledge spillovers and regional growth?: A survey of the literature," Regional Studies, Taylor & Francis Journals, vol. 40(3), pages 375-395.
  38. Laura Bottazzi & Giovanni Peri, 2000. "Innovation and Spillovers: Evidence from European Regions," CESifo Working Paper Series 340, CESifo Group Munich.
  39. Christ, Julian P., 2007. "Varieties of systems of innovation: A survey of their evolution in growth theory and economic geography," Violette Reihe Arbeitspapiere 25/2007, Promotionsschwerpunkt "Globalisierung und Beschaeftigung".
  40. repec:hhs:iuiwop:519 is not listed on IDEAS
  41. Anselin, Luc & Varga, Attila & Acs, Zoltan, 1997. "Local Geographic Spillovers between University Research and High Technology Innovations," Journal of Urban Economics, Elsevier, vol. 42(3), pages 422-448, November.
  42. Combes, Pierre-Philippe, 2000. "Economic Structure and Local Growth: France, 1984-1993," Journal of Urban Economics, Elsevier, vol. 47(3), pages 329-355, May.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:zbw:fziddp:200901. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.