1. Geography of Knowledge and R&D-led Growth.
- Author
-
Aloi, Marta, Poyago-Theotoky, Joanna, and Tournemaine, Frédéric
- Subjects
ECONOMIC geography ,REGIONAL economic disparities ,REGIONAL disparities ,INDUSTRIAL clusters ,WAGE differentials ,REGIONAL economics ,GEOGRAPHY - Abstract
We analyse how spatial disparities in innovation activities, coupled with migration costs, affect economic geography, market structure, growth and regional inequality. We provide conditions for existence and uniqueness of a spatial equilibrium, and for the endogenous emergence of industry clusters. Spatial variations in knowledge spillovers lead to spatial concentration of more innovative firms. Migration costs, however, limit the concentration of economic activities in the most productive region. Narrowing the gap in knowledge spillovers across regions raises growth, and reduces regional inequality by making firms more sensitive to wage differentials. The associated change in the industry concentration has positive welfare effects. [ABSTRACT FROM AUTHOR]
- Published
- 2022
- Full Text
- View/download PDF