3 research outputs found
Theoretical perspectives on localised knowledge spillovers and agglomeration
Empirical evidence shows that innovation is geographically concentrated,
but whether localised knowledge spillovers provide a logically
valid explanation for this phenomenon is unclear. I show that in the
context of cost-reducing R&D spillovers between Cournot oligopolists
the explanation is plausible: localised knowledge spillovers encourage
agglomeration, but whether this leads to higher levels of effective R&D
depends on the extent of the spillovers, the number of farms, and the
industry's R&D effciency. Contrary to the earlier theoretical work,this illustrates a context, in which the localised knowledge spillover
explanation is actualised, and provides necessary conditions, which
can be empirically tested