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From the Geography of Innovation to Development Policy Analysis: The GMR-approach

Attila Varga

Annals of Economics and Statistics, 2007, issue 87-88, 83-101

Abstract: Most policy evaluation models do not incorporate geography which is in contradiction with the increased interest in agglomeration effects (such as localized knowledge spillovers) in economics. This paper explains the manner how the geography of innovation literature contributes to develop models to be used for assessing regional, macro and interregional impacts of development policy interventions. The case of the paper is the GMR-Hungary model. Policy simulation results demonstrate the power of such a modeling approach.

Date: 2007
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