Agglomeration and Innovation

Carlino, Gerald A.; Kerr, William R.

doi:10.21799/frbp.wp.2014.26

Cited by 81 publications

(93 citation statements)

References 141 publications

(217 reference statements)

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Thus, for the equilibria that we consider, the subsidy forfeited by foreign firms (z − z * < 0) is dominated by the benefit of greater knowledge spillovers (k > k * ). This location pattern matches in a stylized manner with the fact that innovation tends to be more geographically concentrated than manufacturing (Carlino and Kerr 2015).…”

Section: (Z Zsupporting

confidence: 54%

Corporate Tax Policy and Industry Location With Fully Endogenous Productivity Growth

Davis

Hashimoto

2017

Economic Inquiry

View full text Add to dashboard Cite

This paper considers how national corporate tax policy affects productivity growth through adjustments in geographic patterns of industry in a two‐country model of trade. With trade costs and imperfect knowledge spillovers between countries, production concentrates partially and innovation concentrates fully in the country with the lowest tax rate. A rise in the international corporate tax differential accelerates productivity growth through an increase in the production share of the low‐tax country that improves knowledge spillovers from industry to innovation. The paper also investigates the relationship between the corporate tax differential and the level of market entry, and analytically characterizes the effects of changes in tax policy on national welfare. (JEL F43, O30, O40, R12)

show abstract

Section: (Z Zsupporting

confidence: 54%

Corporate Tax Policy and Industry Location With Fully Endogenous Productivity Growth

Davis

Hashimoto

2017

Economic Inquiry

View full text Add to dashboard Cite

show abstract

“…Such strong localizations and colocalizations of knowledge-intensive functions are well documented in the literature (e.g., Davis and Henderson 2008;Henderson and Ono 2008;Jaffe et al 1993;Bode 2004). They typically take place in urban areas and are attributed to agglomeration economies arising from thick local markets for skilled labor and for specialized services as well as from knowledge spillovers Carlino and Kerr (2015). Even production, which accounts for more than 50 % of total employment, deviates frequently from the location patterns of the industries as a whole (column 1).…”

Section: Integrating Industriesmentioning

confidence: 63%

Spatial fragmentation of industries by functions

2014

View full text Add to dashboard Cite

We show that key functions are spatially clustered with, or dispersed from, each other even within manufacturing industries in West Germany, and that these clustering or dispersion patterns have changed significantly during recent decades. Estimating levels and changes (1992–2007) of localizations and colocalizations of selected functions (production, headquarter services, R&D) within 27 West German industries by means of K densities, we identify two broad groups of industries. In “fragmenting” industries, which account for half of manufacturing employment, functions were more clustered with each other than the industry as a whole after the fall of the Iron Curtain but have, in accordance with regional theories of spatial fragmentation, been unbundled spatially from each other subsequently. In “integrating” industries, by contrast, which account for one third of manufacturing employment, functions were initially dispersed from each other but have subsequently been rebundled spatially with each other. This spatial rebundling may be a consequence of offshoring, i.e., international fragmentation

show abstract

“…The estimated effect of cultural diversity on urban innovation, 2.86, is largely comparable to that of the previous column. In the specification of Column (4), we further introduce the natural log of population density in a city to capture urban agglomeration economies, which have been identified as a source for innovation (Carlino & Kerr, 2014). As the results show, its inclusion does not change the coefficient of cultural diversity much.…”

Section: Baseline Resultsmentioning

confidence: 99%

The Chinese mosaic: Cultural diversity and creative cities

Zhang

2018

Journal of Regional Science

View full text Add to dashboard Cite

This paper identifies the extent to which cultural diversity induced by internal migration affects urban innovation in China. We measure cultural diversity by an index of “plurality” of provinces of origin. Using the 2000 and 2005 population census data, we find that innovative activities are higher in cities with a higher degree of cultural diversity. Further heterogeneity analysis shows that cultural diversity, not only of the highly skilled, but also of the low skilled, has a positive effect on innovation. Our study contributes to the scarce evidence on the effect of cultural diversity on innovation in developing countries.

show abstract

Agglomeration and Innovation

Cited by 81 publications

References 141 publications

Corporate Tax Policy and Industry Location With Fully Endogenous Productivity Growth

Corporate Tax Policy and Industry Location With Fully Endogenous Productivity Growth

Spatial fragmentation of industries by functions

The Chinese mosaic: Cultural diversity and creative cities

Contact Info

Product

Resources

About