Theoretical Perspectives on Localised Knowledge Spillovers and Agglomeration

There is substantial empirical evidence that innovation is geographically concentrated. Unlike what is generally assumed, however, it is not clear that localised knowledge spillovers provide a theoretically valid explanation for this. Studying spillovers of cost-reducing technology between Cournot oligopolists we show that 1) localised knowledge spillovers of any level do encourage agglomeration, but 2) whether this leads to higher levels of effective R&D depends on the type and level of knowledge spillovers, the number of firms, and the industry's R&D efficiency

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Year of publication:	2014
Authors:	Leppälä, Samuli
Publisher:	[S.l.] : SSRN
Subject:	Wissenstransfer \| Knowledge transfer \| Theorie \| Theory \| Spillover-Effekt \| Spillover effect \| Agglomerationseffekt \| Agglomeration effect \| Regionales Cluster \| Regional cluster \| Neue ökonomische Geographie \| New economic geography \| Industrieforschung \| Industrial research \| Innovationsdiffusion \| Innovation diffusion

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