Spillovers and growth in a local interaction model

Alessandra Cassar and Rosella Nicolini ()

UFAE and IAE Working Papers from Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC)

Abstract: In this paper we aim at studying to what extent spillovers between firms may foster economic growth. The attention is addressed to the spillovers connected with the R&D activity that improves the quality of the goods firms supply. Our model develops a growth theory framework and we assume that firms spread around a circle. Our study assesses that spillovers between neighbors affect the probability of successful research for each of them. In particular, spillovers are the forces fuelling growth when, on the whole, firms turn out to be net receivers with respect to their neighbors.

Keywords: Firm agglomerations; Local Spillovers; Economic Growth (search for similar items in EconPapers)
JEL-codes: L16 D92 R11 O4 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev, nep-geo and nep-ino
Date: 2003-05-28
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Persistent link: http://EconPapers.repec.org/RePEc:aub:autbar:574.03

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