The article investigates the effects of the agglomeration of technological activities on the growth in regional productivity, applying the notion of pecuniary knowledge externalities. Pecuniary knowledge externalities enable one to appreciate both the gains and losses associated with the regional concentration of knowledge-generating activities. Both are two sides of the same coin. The gains are due to the reduction in the prices of knowledge as input into its dedicated markets, while the losses stem from the reduction in the prices of knowledge as an output. This analysis allows us to contextualize the effect of geographic proximity on knowledge externalities and their impact on regional growth. Our analysis leads to the hypothesis of an inverted U-shaped relationship between the agglomeration of innovation activities and productivity growth. The empirical analysis based on a large sample of European regions from 1996 to 2003 supports the hypothesis that agglomeration yields diminishing net positive effects beyond a maximum

Productivity growth and pecuniary knowledge externalities: An empirical analysis of agglomeration economies in European regions

ANTONELLI, Cristiano;PATRUCCO, Pier Paolo;QUATRARO, Francesco
2011-01-01

Abstract

The article investigates the effects of the agglomeration of technological activities on the growth in regional productivity, applying the notion of pecuniary knowledge externalities. Pecuniary knowledge externalities enable one to appreciate both the gains and losses associated with the regional concentration of knowledge-generating activities. Both are two sides of the same coin. The gains are due to the reduction in the prices of knowledge as input into its dedicated markets, while the losses stem from the reduction in the prices of knowledge as an output. This analysis allows us to contextualize the effect of geographic proximity on knowledge externalities and their impact on regional growth. Our analysis leads to the hypothesis of an inverted U-shaped relationship between the agglomeration of innovation activities and productivity growth. The empirical analysis based on a large sample of European regions from 1996 to 2003 supports the hypothesis that agglomeration yields diminishing net positive effects beyond a maximum
2011
87
1
23
50
geographic agglomeration; knowledge transactions; pecuniary knowledge externalities; patents; total factor productivity
C. Antonelli; P.P. Patrucco; F. Quatraro
File in questo prodotto:
File Dimensione Formato  
APQ_2010_Economic geography.pdf

Accesso riservato

Tipo di file: PDF EDITORIALE
Dimensione 1.84 MB
Formato Adobe PDF
1.84 MB Adobe PDF   Visualizza/Apri   Richiedi una copia

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2318/80558
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 78
  • ???jsp.display-item.citation.isi??? 71
social impact