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Culture and Diversity in Knowledge Creation

Marcus Berliant () and Masahisa Fujita

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

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.

New Economics Papers: this item is included in nep-cbe, nep-cse, nep-cul, nep-geo, nep-knm and nep-ure
Date: 2011-04
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Related works:
Journal Article: Culture and diversity in knowledge creation (2012) Downloads
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
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