Chapter 3: Local Geographic Spillovers
INTRODUCTION The accumulation of knowledge and its spillover into productive capacity through technological change is a central theme in the new theory of endogenous economic growth (Romer 1986, 1990, 1994; Grossman and Helpman 1991, 1994). An interesting aspect of this perspective has been the renewed attention to the geographic scope of the spillovers between knowledge creation and production, or, the extent of Marshallian spatial externalities as exemplified in the new economic geography of David and Rosenbloom (1990), Krugman (1991), Glaeser et al. (1992), and others. In urban and regional economics, a large number of empirical studies have focused on the creation of knowledge, on research and development activities (R&D), and on technological innovation as determinants of various aspects of local and regional economies. Examples are analyses of the location of R&D facilities and high-technology production, and the effect of universities and technology parks on characteristics of the labor market and regional growth (e.g. Malecki 1981, 1986, 1991); Markusen et al. 1986; Andersson et al. 1990; Goldstein and Luger 1990; Luger and Goldstein 1991; Glasmeier 1991; Florax 1992). An important aspect of studies of technological innovation at the regional scale is the role of spatial interaction and spatial structure, as expressed in the form of organizational networks of innovators, regional innovation complexes and regional knowledge infrastructure (e.g. Stohr 1986; Von Hippel 1988; Storper and Walker 1989; DeBresson and Amesse 1992; Feldman 1994; Saxenian 1994). Universities play a central role in this process, not only as producers of basic research,...
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