Innovation, diffusion and agglomeration

Paul Ormerod () and Bridget Rosewell

Economics of Innovation and New Technology, 2009, vol. 18, issue 7, 695-706

Abstract: Traditional accounts of innovation have tended to neglect the need for change to take place at particular times and in particular places. This paper considers how to move towards a description of innovative processes that take time and place into account. In particular, it looks at the role that cities might play in enabling innovative diffusion. This considers a role for cities that goes beyond the new economic geography, which has described a role for cities in a static maximising framework to look at dynamic impacts. We know that innovation happens particularly in cities and that productivity, which is associated with innovation, is higher in cities. We present a modelling framework that characterises the city as an evolving network and identifies the scope for innovation to diffuse across these networks at any point in time. It shows that diffusion is possible even when shocks reduce the number of connections that agents have.

Keywords: innovation; agglomeration; cities; network analysis (search for similar items in EconPapers)
Date: 2009
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DOI: 10.1080/10438590802564659

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