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Contribution Details
| Type | Journal Article |
| Scope | Discipline-based scholarship |
| Title | External spillovers, internal spillovers and the geography of production and innovation |
| Organization Unit | |
| Authors |
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| Item Subtype | Original Work |
| Refereed | Yes |
| Status | Published in final form |
| Language |
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| Journal Title | Regional Science and Urban Economics |
| Publisher | Elsevier |
| Geographical Reach | international |
| ISSN | 0166-0462 |
| Volume | 29 |
| Number | 6 |
| Page Range | 679 - 696 |
| Date | 1999 |
| Abstract Text | We consider a three-location duopoly model such that (i) firms choose production and innovation locations before (Bertrand) competition takes place and (ii) there are internal and external knowledge spillovers. We show: (1) agglomerations where firms earn negative profits may exist when there are both external and internal knowledge spillovers; (2) greater external spillovers do not necessarily favor agglomeration; (3) decreasing communication costs tend to favor agglomeration; (4) there are exactly two types of agglomeration equilibria: either both firms innovate in the agglomeration, or there is an innovator and an imitator; and (5) if there is a location where both firms produce, then innovation must take place in this location. |
| Digital Object Identifier | 10.1016/S0166-0462(99)00026-5 |
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