nep-geo New Economics Papers
on Economic Geography
Issue of 2018‒06‒11
six papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Geographic Proximity and Science Parks By Link, Albert; Scott, John
  2. Fiscal Transfers in the Spatial Economy By Marcel Henkel; Tobias Seidel; Jens Suedekum
  3. Exploring Brexit with dynamic spatial panel models : some possible outcomes for employment across the EU regions By Fingleton, Bernard
  4. Does related variety affect regional resilience? New evidence from Italy By Giulio Cainelli; Roberto Ganau; Marco Modica
  5. Industrial Relatedness and Regional Resilience in the European Union By Giulio Cainelli; Roberto Ganau; Marco Modica
  6. Regional Employment and Artificial Intelligence in Japan By HAMAGUCHI Nobuaki; KONDO Keisuke

  1. By: Link, Albert (University of North Carolina at Greensboro, Department of Economics); Scott, John (Dartmouth College)
    Abstract: Science parks, also called research parks, technology parks, or technopolis infrastructures, have increased rapidly in numbers as many countries adopted the approach of bringing together in a park research-based organizations. A science park’s cluster of research and technology-based organizations is often located on or near a university campus. The juxtaposition of ongoing research of both the university and of the park tenants creates a two-way flow of knowledge; knowledge is transferred between the university and firms, and all parties develop knowledge more effectively because of their symbiotic relationship. Theory and evidence support the belief that the geographic proximity that a science park provides for the participating organizations creates a dynamic cluster that accelerates economic growth and international competitiveness through the innovation-enabling exchanges of knowledge and the transfer of technologies. The process of creating innovations is more efficient because of the agglomeration of research and technology-based firms on or near a university campus. The proximity of a park to multiple sources of knowledge provides greater opportunities for the creation and acquisition of knowledge, especially tacit knowledge, and the geographic proximity therefore reduces the search and acquisition costs for that knowledge. Understanding the mechanisms by which the innovative performance of research and technology-based organizations is increased by their geographic proximity in a science park is important for formulating public and private sector policies toward park formations because successful national innovation systems require the two-way knowledge flow, among firms in a park and between firms and universities, that is fostered by the science park infrastructure.
    Keywords: science park; research park; technology park; geographic proximity; technology transfer; clusters; location; innovation; knowledge spillovers; patents; regional growth and development;
    JEL: O31 O32 O34 R11 R12
    Date: 2018–05–31
  2. By: Marcel Henkel; Tobias Seidel; Jens Suedekum
    Abstract: Many countries operate pronounced fiscal equalization schemes that shift tax revenue across jurisdictions. We use a general equilibrium model with multiple asymmetric regions, costly trade and labor mobility to carve out the aggregate implications of this policy. Calibrating the model for Germany, we find that it indeed delivers smaller spatial economic disparities across regions. This comes at the cost of lower national output, however, because activity is diverted away from core cities and towards remote areas with low productivity. But despite this output loss, fiscal transfers may still raise national welfare, because they effectively countervail over-congestion in large cities.
    Keywords: fiscal equalization, regional transfers, migration, spatial economics
    JEL: F15 R12 R13 R23
    Date: 2018
  3. By: Fingleton, Bernard
    Abstract: Starting with a reduced form derived from standard urban economics theory, this paper estimates the possible job-shortfall across UK and EU regions using a time-space dynamic panel data model with a Spatial Moving Average Random Effects (SMA-RE) structure of the disturbances. The paper provides a logical rational for the presence of spatial and temporal dependencies involving the endogenous variable, leading to estimates based on a dynamic spatial Generalized Moments (GM) estimator proposed by Baltagi, Fingleton and Pirotte (2018). Given state-of-the art interregional trade estimates, the simulations are based on a linear predictor which utilizes different regional interdependency matrices according to assumptions about interregional trade post-Brexit.
    Keywords: Brexit; Interregional trade; Urban economics theory; Panel data; Spatial lag; Spatio-temporal lag; Dynamic; Spatial moving average; Prediction; Simulation.
    JEL: C23 C33 C53 E27 F10 J21 R12
    Date: 2018–05–06
  4. By: Giulio Cainelli; Roberto Ganau; Marco Modica
    Abstract: Although several contributions have studied the effect of related variety on the economic performance of firms and regions, its influence on regional resilience ? that is, regions' capacity to adapt to external shocks ? has received little attention. This paper contributes to this debate by analysing empirically the relationship between related variety and regional resilience at the Italian Local Labour Market (LLM) level. The analysis adopts the definition of regional resilience developed by Martin (2012), and employs spatial econometric techniques ? besides standard non-spatial models ? to analyse the role played by related variety as a short-run shock absorber with respect to the 2008 Great Recession. The results obtained from the estimation of Spatial Error Models suggest that LLMs characterised by a higher level of related variety have shown a higher capacity to adapt to an external shock, that is, the Great Recession. This evidence is confirmed with respect to two different short-run time horizons, the one-year period 2012-2013 and the three-year period 2010-2013.
    Keywords: Regional Resilience; Related Variety; Local Labour Markets; Italy
    JEL: B52 C21 R11
    Date: 2018–05
  5. By: Giulio Cainelli; Roberto Ganau; Marco Modica
    Abstract: The 2008 Great Recession prompted interest in the concept of regional resilience. This paper discusses and empirically investigates the relationship between industrial relatedness and economic resilience across European Union regions over the 2008-2012 crisis period. The analysis focuses on two types of industrial relatedness: technological and vertical (i.e. market-based). The empirical analysis is performed on a sample of 209 NUTS-2 regions in 16 countries. Our results highlight a positive effect of technological relatedness on the probability of resilience in the very short run (i.e. the 2008-2009 period), while the negative effect of vertical relatedness seems to persist for longer.
    Keywords: Technological Relatedness; Vertical Relatedness; Regional Resilience; European Union
    JEL: B52 C25 O52 R11
    Date: 2018–05
  6. By: HAMAGUCHI Nobuaki; KONDO Keisuke
    Abstract: This study investigates employment risk caused by new technology, such as artificial intelligence (AI) and robotics, using the probability of computerization by Frey and Osborne (2017) and Japanese employment data. The new perspective of this study is the consideration of regional heterogeneity in labor markets due to the uneven geographical distribution of occupations, which is especially observed between male and female workers. This study finds that female workers are exposed to higher risks of computerization than male workers, since they tend to be engaged in occupations with a high probability of computerization. This tendency is more pronounced in larger cities. Our results suggest that supporting additional human capital investment alone is not enough as a risk alleviation strategy against new technology, and policymakers need to address structural labor market issues, such as gender biases for career progression and participation in decision-making positions, in the AI era to mitigate unequal risk of computerization between workers.
    Date: 2018–05

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