Agglomeration, innovation and international research mobility |
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Authors: | Jan Kranich |
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Institution: | aChair of Microeconomics, Leibniz University of Hannover, D-30 167 Hannover, Germany |
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Abstract: | This paper discusses a model of the New Economic Geography, in which the seminal core-periphery model of Krugman Krugman, P., 1991, Increasing returns and economic geography, Journal of Political Economy 99, 483–499.] is extended by endogenous research activities. Beyond the common ‘anonymous’ consideration of R&D expenditures within fixed costs, this model introduces in an analytically tractable approach vertical product differentiation in combination with a de-integrated R&D sector. In the context of international factor mobility, the destabilizing effects of a mobile scientific workforce are analyzed. Based upon a simple welfare analysis, a consideration of R&D promoting policy instruments and their spatial implications, this paper makes a contribution to the brain-drain debate. |
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Keywords: | R& D New economic geography Vertical differentiation |
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