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ABSTRACT This paper seeks to develop our understanding of the somewhat diffuse nature of technological externalities and space by associating a geographical dimension with the sectoral dimension. Using a panel data set containing French patents as well as private and public research expenditures by industry and region over the period from 1992 to 2000, this paper estimates a knowledge production function. The region‐ and industry‐specific nature of the sample data allows us to empirically examine spatial spillovers associated with public and private research expenditures in own‐ and other‐industry sectors for our sample of 94 French regions. We find that the largest direct and indirect effects are associated with private R&D activity that spills across industry boundaries. However, since Jacobs externalities decrease more drastically with distance than MAR externalities, our results also point to different optimal strategies for regional versus national officials.
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Document Type: Research Article

Affiliations: 1: Université de Lyon, Université Jean Monnet, F-42023 Saint-Etienne, France; CNRS, GATE Lyon-St. Etienne, UMR n° 5824, 69130 Ecully, France. 2: Fields Endowed Chair in Urban and Regional Economics, McCoy College of Business Administration, Department of Finance and Economics, Texas State University, 601 University Drive, San Marcos, TX 78666.

Publication date: 2011-08-01

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