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The Geography of Knowledge and R&D-led Growth

Aloi, Marta; Poyago-Theotoky, Joanna; Tournemaine, Frédéric

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Associate Professor

Joanna Poyago-Theotoky

Frédéric Tournemaine


We analyse how spatial disparities in innovation activities, coupled with migration costs, affect economic geography, market structure, growth and regional inequality. We provide conditions for existence and uniqueness of a spatial equilibrium, and for the endogenous emergence of industry clusters. Spatial variations in knowledge spillovers lead to spatial concentration of more innovative firms. Migration costs, however, limit the concentration of economic activities in the most productive region. Narrowing the gap in knowledge spillovers across regions raises growth, and reduces regional inequality by making firms more sensitive to wage differentials. The associated change in the industry concentration has positive welfare effects.

Journal Article Type Article
Acceptance Date Apr 23, 2021
Online Publication Date Sep 25, 2021
Publication Date 2022-12
Deposit Date Apr 21, 2021
Publicly Available Date Sep 26, 2023
Journal Journal of Economic Geography
Print ISSN 1468-2702
Electronic ISSN 1468-2710
Peer Reviewed Peer Reviewed
Volume 22
Issue 6
Pages 1149–1190
Keywords Growth; Economic geography; Geographic labour mobility; Innovation; R&D; Knowledge spillovers; Regional economics
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