R&D and the agglomeration of industries

Jan Kranich

No 83, Working Paper Series in Economics from University of Lüneburg, Institute of Economics

Abstract: This paper discusses a model of the New Economic Geography, in which the seminal core-periphery model of Krugman (1991) is extended by endogenous research activities. Beyond the common ’anonymous’ consideration of R&D expenditures within fixed costs, this model introduces vertical product differentiation, which requires services provided by an additional R&D sector. In the context of international factor mobility, the destabilizing effects of a mobile scientific workforce are analyzed. In combination with a welfare analysis and a consideration of R&D promoting policy instruments and their spatial implications, this paper makes a contribution to the so-called brain drain debate.

Keywords: R&D; New Economic Geography; Vertical Differentiation (search for similar items in EconPapers)
JEL-codes: F12 F14 F17 (search for similar items in EconPapers)
Pages: 53 pages
Date: 2008-04
New Economics Papers: this item is included in nep-geo, nep-ino, nep-mic and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:lue:wpaper:83

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