Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/28199
Authors: 
Kranich, Jan
Year of Publication: 
2008
Series/Report no.: 
University of Lüneburg Working Paper Series in Economics 83
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.
Subjects: 
R&D
new economic geography
vertical differentiation
JEL: 
F12
F14
F17
Document Type: 
Working Paper

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