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Culture and diversity in knowledge creation

Marcus Berliant and Masahisa Fujita

Regional Science and Urban Economics, 2012, vol. 42, issue 4, 648-662

Abstract: Is the paradise of effortless communication the ideal environment for knowledge creation? Or, can the development of local culture in regions raise knowledge productivity compared to a single region with a unitary culture? In other words, can a real technological increase in the cost of collaboration and the cost of public knowledge flow between regions, resulting in cultural differentiation between regions, increase welfare? In our framework, a culture is a set of ideas held exclusively by residents of a location. In general in our model, the equilibrium path generates separate cultures in different regions. When we compare this to the situation where all workers are resident in one region, R&D workers become too homogeneous and there is only one culture. As a result, equilibrium productivity in the creation of new knowledge is lower relative to the situation when there are multiple cultures and workers are more diverse.

Keywords: Knowledge creation; Knowledge diversity; Ideas and culture (search for similar items in EconPapers)
JEL-codes: D83 O31 Z1 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (33)

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Working Paper: Culture and diversity in knowledge creation (2012) Downloads
Working Paper: Culture and Diversity in Knowledge Creation (2011) Downloads
Working Paper: Culture and diversity in knowledge creation (2011) Downloads
Working Paper: Culture and diversity in knowledge creation (2011) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:42:y:2012:i:4:p:648-662

DOI: 10.1016/j.regsciurbeco.2012.02.008

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