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Estimates of the impact of static and dynamic knowledge spillovers on regional factor productivity

Manfred Fischer and James LeSage ()

ERSA conference papers from European Regional Science Association

Abstract: We develop an empirical approach to examine static and dynamic knowledge externalities in the context of a regional total factor productivity relationship. Static externalities refer to current period scale or industry-size effects which have been labeled localization externalities or region-size effects known as agglomeration externalities. Dynamic externalities refer to the relationship between accumulated or prior period knowledge and current levels of innovation, where past learning-by-doing makes innovation positively related to cumulative production over time. Our empirical specification allows for the presence of both static and dynamic externalities, and provides a way to assess the relative magnitude of spillovers associated with spillovers from these two types of knowledge externalities. The magnitude of own-region impacts and other-region (spillovers) can be assessed using scalar summary measures of the own- and cross-partial derivatives from the model. We find evidence supporting the presence of dynamic externalities as well as static, and our estimates suggest that dynamic externalities may have a larger magnitude of impact than static externalities.

New Economics Papers: this item is included in nep-cse, nep-eff, nep-geo, nep-knm and nep-ure
Date: 2011-09
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Journal Article: Estimates of the Impact of Static and Dynamic Knowledge Spillovers on Regional Factor Productivity (2012) Downloads
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