Spatial distribution of innovative activities and economic performances: A geographical-friendly model

Abstract

The paper identifies 5 stylized facts to characterize the geographic distribution of innovative activities in France (mainly its high concentration in the region Ile-de-France). It proposes an original model of regional growth in a knowledge-based economy considering the density of RD activities and the connectivity to the other regions. The model is computed and run into 2 different configurations: equidistribution and overconcentration. The simulations’ results lead to the conclusion that the equidistribution configuration is Pareto-efficient (higher growth rate of the national economy, lower income spatial inequalities) compared to the overconcentration. Policy implications are discussed in conclusion.France; Geography of innovation; Knowledge spillover; Regional growth; Simulation