Knowledge spillovers, location of industry, and endogenous growth

A Grossman–Helpman–Romer-type (Grossman and Helpman in Innovation and growth in the world economy, 1991; Romer in J Polit Econ 98:71–102, 1990) endogenous-growth model is developed in this study. This model has two countries in which there are knowledge spillovers that are partially local. Owing to these spillovers, the innovation costs in a particular country decrease as the number of firms locating in both that country and the other country increases. If international knowledge spillovers are symmetric, the innovation sector is in the country with the larger market. However, if international knowledge spillovers are asymmetric, the innovation costs may be in the small-market country. When innovation costs are lower in the country with a large market, the growth rate increases with a reduction of transportation costs. However, when innovation costs are lower in the country with the smaller market, the growth rate decreases with a reduction in transportation costs. We are grateful to Marcus Berliant, Masahisa Fujita, Koichi Futagami, Tatsuo Kinugasa, Takuo Imagawa, Tomoya Mori, Se-il Mun, Hisahiro Naito, Ryoji Ohdoi, Tatsuyoshi Saijyo, and Akihisa Shibata for their helpful comments and suggestions. Any remaining errors are the responsibility of the authors.     

Trade and spatial economic interdependence

Abstract. Regional scientists have had a long fascination with spatial economic interdependence, initially stimulated by the development of a suite of models in Isard (1960). In recent years there have been two major developments; first, a movement towards greater integration in model development not only with large-scale models, but also with careful attempts to make more components of the system endogenous. The second development has been the pursuit of greater integration than in earlier studies between theory and applied regional economic modelling, most notably in the area of trade and economic development. We explore some of the recent developments of this latter approach and provide an assessment of the current state-of-the art of some future opportunities.     

Do geographical agglomeration, growth and equity conflict?

Abstract.  The paper analyses the impact of economic integration on individual inequality and regional disparity in a model of endogenous growth and geography. Assuming localised learning externalities and perfect mobility of capital, trade integration of economies yields a trade-off for the policy maker because it increases growth and decreases inequality on the one hand, but geographical agglomeration strengthens on the other. However, a policy that aims to improve trade in ideas does not face this trade-off.
Abstract.  El artículo analiza el impacto de la integración económica en la inecualidad individual y la disparidad regional en un modelo de crecimiento endógeno y geografía. Asumiendo externalidades de aprendizaje localizadas y una perfecta movilidad de capitales, la integración de comercio de economías crea un trade-off para el formulador de políticas porque por un lado aumenta el crecimiento y disminuye la inecualidad, pero por otro aumenta la aglomeración geográfica. Sin embargo, una política que trate de mejorar un intercambio de ideas no se enfrenta a este trade-off .
 

     

Variety in knowledge sourcing,geography and innovation: Evidence from the ICT sector in Austria

It has been argued that innovation increasingly depends on external knowledge sources. It is still unclear if relations to particular knowledge sources or to a broad variety of sources matter for innovation. Also, there is a debate on the issue which spatial levels are most relevant. In this context, we investigate the importance for ICT firms in Austria of variety in knowledge sourcing for their innovativeness and the relevance of geography in this respect. The results show that more innovative firms tend to exploit a larger variety of regional and international sources. We also find that R&D co-operations and in-house knowledge capabilities are highly important, while firm location only shows a weak association with their innovativeness.     

Growth and disparities in Europe: Insights from a spatial growth model*

This paper provides a spatial neoclassical growth model for a system of N regional economies. Regional output growth is determined by interregional fixed capital relocations which depend on initial factor endowments as well as a region's relative location in space. The dynamics of the model are captured by a Taylor approximation, which provides a testable spatial econometric model specification that is applied for European regions on the NUTS 2 level. Both theoretical and empirical results show how relatively high human capital endowments are beneficial to growth if found within one region, but disadvantageous if found in neighbouring regions. Este artículo proporciona un modelo de crecimiento neo‐clásico espacial para un sistema de N economías regionales. El crecimiento del producto regional viene determinado por deslocalizaciones interregionales de capital fijo que dependen de la dotación de factores inicial, así como de la relativa localización espacial de una región. Las dinámicas del modelo son capturadas mediante una aproximación de Taylor, que proporciona una especificación comprobable de modelo econométrico espacial que se aplica a regiones europeas a nivel NUTS 2. Tanto los resultados teoréticos como los empíricos muestran como las dotaciones relativamente elevadas de capital humano son ventajosas para el crecimiento cuando se concentran en una región, pero una desventaja si se encuentran en regiones vecinas.      

Geographical knowledge search,internal R&D intensity and product innovation of clustering firms in Zhejiang,China

While a great deal of literature has paid attention to knowledge spillover on innovation, this study argues that geographical knowledge search that lays much emphasis on firm strategies merits more attention. This paper examines the effect of geographical knowledge search strategies, such as local/non‐local search depth and local/non‐local search breadth on product innovation. We reveal that while local search depth and breadth as well as non‐local search breadth exert a significant influence, non‐local search depth produces a negative impact on product innovation. Our research suggests that clustering firms' geographical knowledge search strategies and R&D intensity should be highlighted to understand their product innovation.     

Effects of corruption,technological innovation,globalisation, and renewable energy on carbon emissions in Asian countries

This study attempts to identify the role of corruption along with technological innovation, globalisation, renewable energy, and economic growth on CO₂ emissions in Asian countries using the panel data for 1960–2020. Driscoll and Kraay's standard error technique and Panel Corrected Standard Error (PCSE) model have been applied for empirical estimation where the findings disclose that corruption, technological innovation, globalisation, and GDP increase, whereas the renewable energy and square of GDP reduce the CO₂ emissions in the study areas. The causal associations between the studied variables under pairwise Granger causality are also exposed.     

The relationship between start‐ups,market mobility and employment growth: An empirical analysis for Dutch regions

Recent literature suggests two mechanisms through which the start‐up of new firms contributes to economic development: the growth of start‐ups and competition among incumbent firms induced by the start‐ups. While existing studies derive the competition effect indirectly, this paper deploys a direct measure, called market mobility, to approximate the induced competition effect. The empirical results are consistent with the idea that both effects are important in explaining the long‐term economic impact of start‐ups. First, the most successful start‐ups grow to become high‐growth firms, and second, the entry of new firms stimulates incumbent firms to perform better.     

Employment,income, migration and public services: A simultaneous spatial panel data model of regional growth*

We estimate a regional spatial panel simultaneous‐equations growth model, using a five‐step new estimation strategy that generalizes an approach outlined in Kelejian and Prucha. The study region consists of the 418 Appalachian counties 1980?2000. Estimates show feedback simultaneities among the endogenous variables, conditional convergence with respect to the respective endogenous variables, and spatial autoregressive lag and spatial cross‐regressive lag effects with respect to the endogenous variables. A key policy conclusion is that sector‐specific programs should be integrated and harmonized and that regionally differentiated development policies may yield greater returns than treating all locations the same. Estimamos un modelo de crecimiento de panel espacial regional por ecuaciones simultaneas, utilizando una nueva estrategia de estimación de cinco pasos que generaliza una enfoque descrito en Kelejian y Prucha. La región de estudio comprende los 418 condados Apalaches 1980‐2000. Las estimaciones muestran simultaneidades de retroalimentación entre las variables endógenas, convergencia condicional con respecto a las variables endógenas respectivas, y un retardo espacial autorregresivo y efectos de retardo regresivos cruzados espaciales con respecto a las variables endógenas. Una conclusión clave sobre políticas es que los programas sectoriales específicos deberían estar integrados y armonizados, y que las políticas de desarrollo diferenciadas regionalmente podrían producir mejores retornos que si se tratasen todas las localizaciones del mismo modo.