Theoretical Perspectives on Localised Knowledge Spillovers and Agglomeration

17 Pages Posted: 13 Jul 2014

See all articles by Samuli Leppälä

Samuli Leppälä

The Finnish Competition and Consumer Authority

Date Written: July 11, 2014

Abstract

There is substantial empirical evidence that innovation is geographically concentrated. Unlike what is generally assumed, however, it is not clear that localised knowledge spillovers provide a theoretically valid explanation for this. Studying spillovers of cost-reducing technology between Cournot oligopolists we show that 1) localised knowledge spillovers of any level do encourage agglomeration, but 2) whether this leads to higher levels of effective R&D depends on the type and level of knowledge spillovers, the number of firms, and the industry's R&D efficiency.

Keywords: knowledge spillovers, agglomeration economies, innovation, location.

JEL Classification: O33, R32, L13.

Suggested Citation

Leppälä, Samuli, Theoretical Perspectives on Localised Knowledge Spillovers and Agglomeration (July 11, 2014). Available at SSRN: https://ssrn.com/abstract=2465035 or http://dx.doi.org/10.2139/ssrn.2465035

Samuli Leppälä (Contact Author)

The Finnish Competition and Consumer Authority ( email )

Lin­tu­lah­den­ku­ja 2
Helsinki, 00530
Finland

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
36
Abstract Views
417
PlumX Metrics