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http://hdl.handle.net/10419/37106
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| Title: | | The formation of urban centers under R&D and spillover externalities  |
| Authors: | | Kranich, Jan |
| Issue Date: | | 2009 |
| Series/Report no.: | | Discussion papers // School of Economics and Management of the Hanover Leibniz University 430 |
| 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. |
| Subjects: | | Bid-rent Land Use R&D Externalities |
| JEL: | | R1 R14 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Diskussionspapiere, Wirtschaftswissenschaftliche Fakultät, Universität Hannover
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