Positive and Negative Externalities in Innovation,Trade, and Regional Economic Growth

We build on Grossman and Helpman (1991), Rivera‐Batiz and Romer (1991), Acemoglu (2009, pp. 678–80), and Batabyal and Nijkamp (2013b) and analyze the interactions between positive and negative externalities in innovation and trade for economic growth in a region when this region is part of an aggregate economy consisting of two regions. In both regions, consumers have constant relative risk aversion preferences; there is human capital use, and there are three kinds of manufacturing activities involving the production of blueprints for inputs or machines, the inputs or machines themselves, and a single final good for consumption. We study two cases. In the first case, although no growth occurs in the human capital stock, innovative activities give rise to positive externalities or knowledge spillovers in two ways. In this setting, we, study whether and under what circumstances opening a region to trade results in an increase in this region's equilibrium growth rate. In the second case, although growth occurs in the human capital stock, innovation experiences negative externalities. In this scenario, we show that opening a region to trade leads to more innovation but to no change in its long‐run growth rate. Los autores se basan en el trabajo de Grossman y Helpman (1991), Rivera‐Batiz y Romer (1991), Acemoglu (2009, pp 678‐80), y Batabyal y Nijkamp (2013B), para analizar las interacciones entre las externalidades positivas y negativas en la innovación y comercio para el crecimiento económico en una región, en los casos en los que dicha región es parte de una economía global que consiste en dos regiones. En estas dos regiones hipotéticas a) los consumidores tienen aversión constante al riesgo relativo (CRRA); b) se hace uso del capital humano; y, c) se llevan a cabo tres tipos de actividades manufactureras: la elaboración de planes o plantillas de producción, la producción de insumos y maquinaria, y la producción de un único bien de consumo final. El presente estudio analiza dos casos. En el primer caso, aunque no hay crecimiento en el stock de capital humano, las actividades de innovación generan externalidades positivas o derrames (spillovers) de conocimiento de dos tipos. En este contexto, se estudia si, y bajo qué circunstancias la apertura de una región al comercio resulta en un aumento en la tasa de crecimiento de equilibrio de la región. En el segundo caso, hay crecimiento en el stock de capital humano, pero la innovación experimenta externalidades negativas. En este escenario, se muestra que la apertura al comercio de una región conduce a una mayor innovación pero sin ningún cambio en la tasa de crecimiento a largo plazo. 本文在Grossman and Helpman (1991)、Rivera‐Batiz and Romer (1991)、 Acemoglu (2009,,pp. 678–80)和Batabyal and Nijkamp (2013b)等研究基础上,分析了当某一区域与另一区域构成经济聚合体时,该区域经济增长中创新与贸易的外部正负效应的相互影响。在两区域中,消费者均具有不变的相对风险规避(CRRA)参数设定,然后考虑人力资本利用和三种类别的制造活动的预期产量,即投入或机器、原料或机器本身、可消费的单一制成品。我们分析了两种不同的场景。在第一种场景中,尽管人力资本存量并未增长,创新活动也通过正外部性或知识溢出两种方式得到了增长。在该设定下,我们研究了区域是否或者在何种情况下开放贸易会提高地区的均衡增长率。在第二种场景中,尽管人力资本存量增长而创新部分却经历着负外部效应的影响。研究显示,一个地区贸易开放将导致更多创新活动的发生,但并未影响到长期的增长率。     

Identification of Employment Concentration Areas

This article presents a method to identify “Absolute and Relative Employment Concentration (AREC) areas” for a particular industry. Two novel characteristics of the method are that it simultaneously analyses AREC, and that it combines spatial concentration per area with the spatial concentration in neighbouring areas. The method is easy to understand and apply. It is developed to assist regional policy makers and corporate decision-makers with their investment decisions related to new infrastructure or plants. The identification of concentration areas also allows for analysing the performance of these areas in relation to characteristics such as infrastructure availability and the housing and labour market. This can yield new academic insights that are relevant for regional planners. An application of the newly developed method to five industries in a Dutch province subdivided into 502 areas illustrates the value of the method in comparison to other methods.     

Imaginary Success?—The Contentious Ascendance of Creativity

This paper posits that a set of “creative industries” centred around cultural practice have played a key role within a dominant “economic imaginary” in recent years. The success and stability of this role is considered, and a coherent position regarding the nature of creativity is outlined. Examination of the “evidence” gathering projects used to bulwark this position, however, reveals how the data which emerge from such projects may no longer appropriately serve to support the position the creative industries have come to occupy within the dominant imaginary. It is argued that this imaginary persists in providing a coherent framework for understanding and for action, however, regardless of the contradictions it contains. A tangible example of this “imaginary success” is briefly considered within the UK context, via an examination of developments around the staging of the European Capital of Culture programme in Liverpool, England in 2008. In this case, it is also argued that apparent contradictions are successfully concealed by dominant positions regarding culture and creativity. In conclusion, some explanations for this state of affairs are considered, and it is argued that the increased attention being paid to cultural creativity may render the continued concealment of these contradictions untenable.     

Creating an Imperial Frontier: Archaeology of the Formation of Rome’s Danube Borderland

For investigating the formation of frontier zones, study of changes in small communities that constituted the majority of earlier populations provides a different perspective from a focus on major centers. A network model applied to settlement and cemetery sites on Romes Danube River frontier in Bavaria, Germany, shows that many communities, through participation in regional and long-distance circulation systems, played significant roles in creating the dynamic and culturally heterogeneous character of that landscape. This approach offers a model applicable to analysis of the formation and functioning of frontier regions in all cultural contexts.     

SPATIAL HETEROGENEITY AND THE WAGE CURVE REVISITED*

ABSTRACT Most “wage curve” studies ignore the geography of local labor markets. However, when a local labor market is in close proximity of other labor markets, a local shock that increases unemployment may not lead to lower pay rates if employers fear outward migration of their workers. Hence, the unemployment elasticity of pay will be greater, the more isolated the local labor market is. Wages are also expected to be higher in regions that interact strongly with other regions. These hypotheses are confirmed by means of an estimation of wage curves with data for 327 regions of western Germany over the period 1990–1997.