Endogenous Knowledge Spillovers and Labor Mobility in Industrial Clusters

Antonio Guarino () and Piero Tedeschi ()

No 20060507, Working Papers from Università degli Studi di Milano-Bicocca, Dipartimento di Statistica

Abstract: Knowledge spillovers and labor mobility in industrial clusters are interrelated phenomena. A firm's knowledge is embodied in the entrepreneur and in the specialized workers. Knowledge can spill over from one firm to another through two channels: direct revelation from one entrepreneur to another and labor mobility. We show that, in equilibrium, an entrepreneur can disclose information to another in order to avoid labor poaching. The incentive of firms to disclose information voluntarily is one of the novel contributions of our paper. In the absence of information disclosure, spillovers can still occur through labor poaching. Labor poaching and voluntary disclosure of information can also occur simultaneously in equilibrium. We also provide a rationale for the localized character of the spillovers and for the limited geographical extensions of industrial clusters.

Keywords: Spillover; Industrial Cluster; Labor Mobility (search for similar items in EconPapers)
JEL-codes: D83 L11 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2006-05
New Economics Papers: this item is included in nep-bec and nep-ure
References: View references in EconPapers View complete reference list from CitEc
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