Interregional Knowledge Spillovers and Economic Growth: The Role of Relational Proximity

Roberto Basile, Roberta Capello and Andrea Caragliu
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Roberto Basile: ISAE (Institute for Studies and Economic Analyses)

A chapter in Drivers of Innovation, Entrepreneurship and Regional Dynamics, 2011, pp 21-43 from Springer

Abstract: Abstract Standard neoclassical growth models (Solow 1956; Mankiw et al. 1992) implicitly assume that the technological progress is characterized by a worldwide global interdependence between economies without frictions. In contrast, recent mainstream contributions to the economic growth literature (Lòpez-Bazo et al. 2004; Ertur and Koch 2007) support the idea that technological interdependence is not homogenous across economies (countries or regions) and depends on their geographical connectivity scheme with other economies, which adds to reflections already envisaged in previous studies (Acs et al. 1994; Anselin et al. 2000). An important feature of technology is its aptitude to spread across borders (Coe and Helpman 1995, and Eaton and Kortum 1996, among others). However, the spatial diffusion of technological knowledge may be geographically bounded, so that the stock of knowledge in one region may spill over into other regions with an intensity which decreases with geographical distance (the so-called “spatial friction” hypothesis).

Keywords: Knowledge Spillover; Spatial Weight Matrix; Relational Proximity; Spatial Durbin Model; Smooth Term (search for similar items in EconPapers)
Date: 2011
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DOI: 10.1007/978-3-642-17940-2_2

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