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This title was first published in 2000: Steven Nivin analyzes a
process vital to economic development - technological change. He
furthers understanding of the processes driving innovation, so that
we may gain a deeper insight into the development of economies.
Specifically, the study explores the concept of innovation
potential and the factors that result in variations in innovation
potential across metropolitan areas, using the US machine tool
industry as a case study. To provide a comparison, the same models
are also estimated for the semiconductor industry. The findings
indicate that urbanisation economies, localization economies, human
capital, universities, and invention-derived knowledge are
significant factors. The study assesses the contributions of three
different skill levels of human capital; college-educated, graduate
degree, and locally produced PhD's in mechanical and electrical
engineering. Only the graduate and PhD degree measures are found to
be significant, indicating the importance of having a highly
skilled pool of labour within the region. The influences of the
factors appear to be similar across industries, with some slight
differences. The transfer of knowledge through patents is also
studied. It is found that the transmission of this knowledge is
slower between different industries, relative to the transmission
within the same industry.
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