Arbeitspapier
The Rise (and Fall) of Tech Clusters
Tech clusters play a growing role in knowledge-based economies by accommodating high-tech firms and providing an environment that fosters location-dependent knowledge spillovers and promote R&D investments by .rms. Yet, not much is known about the economic conditions under which such entities may form in equilibrium without government interventions. This paper develops a spatial equilibrium model with a competitive final sector and a monopolistically competitive intermediate sector, which allows us to determine necessary and sufficient conditions for a tech cluster to emerge as an equilibrium outcome. We show that strongly localized knowledge spillovers, skilled labor abundance, and low commuting costs are key drivers for a tech cluster to form. Not only is the productivity of the final sector higher when intermediate firms cluster, but a tech cluster hosts more intermediate firms and more R&D and production activities, and yields greater worker welfare, compared to what a dispersed pattern would generate. With continual improvements in infrastructure and communication technology that lowers coordination costs, tech clusters will eventually be fragmented.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 8527
- Klassifikation
-
Wirtschaft
Exchange and Production Economies
Firm Organization and Market Structure
Technological Change: Choices and Consequences; Diffusion Processes
General Equilibrium and Welfare Economic Analysis of Regional Economies
- Thema
-
high-tech city
knowledge spillovers
intermediate firm clustering
land use
commuting
R&D
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Kichko, Sergey
Liang, Wen-Jung
Mai, Chao-Cheng
Thisse, Jacques-Francois
Wang, Ping
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and Ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2020
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:45 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Kichko, Sergey
- Liang, Wen-Jung
- Mai, Chao-Cheng
- Thisse, Jacques-Francois
- Wang, Ping
- Center for Economic Studies and Ifo Institute (CESifo)
Entstanden
- 2020
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