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Spatial Knowledge Spillovers and the Dynamics of Agglomeration and Regional Growth (Paperback, 2000 ed.)
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Spatial Knowledge Spillovers and the Dynamics of Agglomeration and Regional Growth (Paperback, 2000 ed.)
Series: Contributions to Economics
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and Feldman, 1996 or Audretsch and Stephan, 1996) show that
unformalized knowledge may playa major role in the innovation of
new products. Now if unformalized knowledge is communicated
personally, distance will be an important variable in this process,
since the intensity of contacts between persons can be expected to
be negatively correlated to the distance between them. In the
discussion of section 3.3.1 (page 42) we saw that it was this
aspect of localization that Marshall had in mind when he was
alluding to "local trade secrets."4 Note that if this spatial
dimension of communication between agents exists, it is possible to
transfer it to regional aggregates of agents: the closer two
regions, the more they will be able to profit from the respective
pool of human capital (R&D-output etc.) of the other region.
This argument gives a spatial 5 interpretation of the literature on
endogenous growth. Now if these spillovers have a spatial dimension
then it follows from the discussion in chapter 3 that they will be
one driving force in the dynamics of agglomeration. With the model
to be developed in this chapter I will investigate the hy pothesis
that it is these forces of agglomeration (i.e. spatial spillovers
of nonrival goods or foctors) that are responsible for the
inhomogeneous pattern of growth con vergence. To analyze this
phenomenon, I consider different types of regional aggregates and
different distances in the model."
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