@techreport{Kranich2009formation,
abstract = {This paper proposes a model of urban agglomeration in conjunction with imperfect competition and endogenous product R&D of firms. The quality of differentiated manufacturing goods is a result of R&D services provided by research firms. Sectoral interactions are subject to spatially dependent transaction costs and (knowledge) spillover externalities. The paper analyzes the existence of fundamental city patterns with respect to R&D intensity and the degree of localization in knowledge production. The model features three equilibrium formations: a monocentric, a mixed, and a perfectly integrated pattern, whereas the R&D intensity always increases towards the city center. However, product quality and the corresponding R&D expenditures of firms are not necessarily increasing with the city size; a result, which also renders decisive implications of local innovation policy.},
address = {Hannover},
author = {Jan Kranich},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {R1; R14; 330; Bid-rent; Land Use; R&D; Externalities; Stadtzentrum; Agglomerationseffekt; Industrielle Forschung; Unternehmensdienstleistung; Spillover-Effekt; St\"{a}dtische Bodennutzung; Theorie},
language = {eng},
number = {430},
publisher = {Wirtschaftswiss. Fak., Leibniz Univ.},
title = {The formation of urban centers under R&D and spillover externalities},
type = {Discussion papers // School of Economics and Management of the Hanover Leibniz University},
url = {http://hdl.handle.net/10419/37106},
year = {2009}
}
