Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/259907 
Authors: 
Year of Publication: 
2006
Series/Report no.: 
Working Paper No. 2005:22
Publisher: 
Lund University, School of Economics and Management, Department of Economics, Lund
Abstract: 
Firms agglomerate in one region due to increasing returns, input-output linkages and transportation costs. In the de-industrialised region factor prices are lower and a new technology may be profitable to adopt in that region instead, inducing a change in the technological leadership. This paper shows that the risk of locking in to an old technology is monotonically increasing in the benefits of agglomeration. Greater incompatibility between technologies also increases the risk of rejecting potentially superior manufacturing processes.
Subjects: 
agglomeration
lock-in
new economic geography
technological leapfrogging
JEL: 
F12
F43
O33
Document Type: 
Working Paper

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