Did the internet prevent all invention from moving to one place?

Chris Forman, Avi Goldfarb, Shane Greenstein 23 May 2014

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Reading the technology press, it often seems as if the media think all high-tech invention happens in Silicon Valley. This parochial viewpoint highlights the ‘agglomeration’ advantages that the Valley provides to inventors because so many technology firms are located in the same place. These advantages include easier access to funding from local venture capitalists, sharing of fixed costs such as specialised patent lawyers, and easier exchange of ideas between researchers.

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Topics:  Frontiers of economic research Productivity and Innovation

Tags:  patents, information technology, technology, agglomeration, internet, economic geography, invention

Who benefits from state corporate tax cuts? A local labour markets approach with heterogeneous firms

Owen Zidar 13 December 2013

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State and local governments have been increasing business location incentives and cutting corporate taxes to attract businesses to their jurisdictions. For instance, Jay Inslee, the Gov. of Washington, recently passed a $9 billion corporate tax package for Boeing to retain its manufacturing base near Seattle. It is the largest corporate tax break any state has ever granted a company.

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Topics:  Taxation

Tags:  taxation, economic geography

Why high-income places manufacture high-quality products

Jonathan Dingel 21 December 2013

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The well-known Linder hypothesis (1961) posits that profitably exporting a product requires robust demand for that product in the exporter's home market. Since higher-income consumers tend to purchase higher-quality products, Linder conjectured that demand by local consumers causes high-income countries to produce and export high-quality products. In contrast, the canonical factor-abundance theory of comparative advantage argues that high-income countries’ greater supply of capital and skills is the reason why they export high-quality products.

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Topics:  International trade

Tags:  trade, economic geography, quality specialisation

Distance frictions and firm border effects in knowledge creation: Evidence from Japanese patent data

Hiroyasu Inoue, Kentaro Nakajima, Yukiko Umeno Saito 25 October 2013

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Since 2001 the Japanese government has been implementing an industrial cluster policy – a set of measures to promote the formation of industrial clusters – in an attempt to promote innovation through the geographical proximity of businesses and thereby improve the nation’s competitiveness in the global market. Such policy is being pursued not only in Japan but also in many countries in Europe.

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Topics:  Industrial organisation

Tags:  economic geography, industry clusters

Anaemia, exuberance, and vulnerability: A post–financial crisis new global economic geography

Ernesto Talvi, Ignacio Munyo 27 October 2011

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It would not be an overstatement to assert that the global financial crisis has created a ‘new global economic geography’, a new reality that responds to the remarkable fact that the crisis that has crippled advanced economies has also left winners around the globe.

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Topics:  Global governance International finance

Tags:  G20, global crisis, economic geography

You can raise productivity through R&D, but geography matters a lot

Sergey Lychagin, John Van Reenen, Margaret E Slade, Joris Pinkse 25 October 2010

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President Obama recently proposed increasing the generosity of the US research and development (R&D) tax credit system and making it a permanent feature of the US tax code. This was justified by the idea that more R&D would lead to growth, not just worldwide but particularly in the US.

But such a bold statement raises some fundamental questions:

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Topics:  Productivity and Innovation

Tags:  productivity and innovation, innovation, agglomeration, economic geography, research and development

Paul Krugman's winning of the Nobel Prize in economics – Contributions to international trade theory

Jota Ishikawa 31 January 2009

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"Kita--!" ("It's here!" or "It's finally come!")

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Topics:  International trade

Tags:  Nobel Prize, economic geography, Paul Krugman, new trade theory

Is the new economic geography passé?

Marius Brülhart 07 January 2009

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In his Nobel Prize lecture on December 8, Paul Krugman argued that his core-periphery model of economic geography is in some sense becoming obsolete. It is not true that “the latest wrinkle in theory must be the latest wrinkle in the way the world works”, he pointed out, and he went on to speculate that “the world is becoming less new geography and more classical”.

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Topics:  Development Productivity and Innovation

Tags:  clusters, urbanisation, agglomeration, economic geography

Long-run spatial inequality in France: Evolution and determinants

Pierre-Philippe Combes, Miren Lafourcade, Jacques-François Thisse, Jean-Claude Toutain 05 December 2008

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This is a very special year for economic geography.

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Topics:  Europe's nations and regions Productivity and Innovation

Tags:  France, agglomeration, economic geography, spatial inequality

Events