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Erscheinungsjahr: 
2003
Schriftenreihe/Nr.: 
SSE/EFI Working Paper Series in Economics and Finance No. 538
Verlag: 
Stockholm School of Economics, The Economic Research Institute (EFI), Stockholm
Zusammenfassung: 
We develop a two-country general equilibrium model where firms make separate choices about the location of R&D and high-tech production. There are two agglomeration forces: R&D spillovers and backward linkages associated with high-tech production. The latter tends to attract production to the larger economy. We show that, for relatively weak R&D spillovers and intermediate trade costs, the smaller economy tends to specialize in R&D. For certain parameterizations, both concentration and dispersion of R&D activities are possible outcomes. Hosting an agglomeration of R&D activities does not necessarily lead to welfare gains.
Schlagwörter: 
monopolistic competition
R&D
high-tech production
agglomeration economies
JEL: 
F12
F23
Dokumentart: 
Working Paper

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