Journal
SPATIAL ECONOMIC ANALYSIS
Volume 13, Issue 1, Pages 5-35Publisher
ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
DOI: 10.1080/17421772.2018.1392038
Keywords
growth; scale effects; innovation; economic geography; F15; O41; R12
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Funding
- Marsden Fund [08-UOW-022-EHB]
- University of Waikato
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In this paper we model growth using a scale-neutral approach to innovation allowing differences between regions to emerge due to regional mechanisms. In this model, agglomeration is growth enhancing as the scale effect for innovation arises from greater access to knowledge rather than any assumed scale effects in growth-modelling techniques. Furthermore, entrepreneurs are assumed to choose the location of firms endogenously so as to minimize the costs of innovation, transport and living. The effects of such mechanisms are such that any policies that increase knowledge spillovers between locations will enhance growth and equality, but may be destabilizing for agglomeration.
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