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Agglomeration and the location of innovative activity

Agglomeration and the location of innovative activity A paradox has been the emergence of the importance of local proximity and geographic clusters precisely at a time when globalization seems to dominate economic activity. The purpose of this paper is to resolve this paradox by explaining why and how geography matters for innovative activity and ultimately for the international comparative advantage. Globalization and the telecommunications revolution have triggered a shift in the comparative advantage of the leading developed countries towards an increased importance of innovative activity. This shift in comparative advantage has increased the value of knowledge-based economic activity. Since knowledge is generated and transmitted more efficiently via local proximity, economic activity based on new knowledge has a high propensity to cluster within a geographic region. This has triggered a fundamental shift in public policy towards business, away from policies constraining the freedom of firms to contract and towards a new set of enabling policies, implemented at the regional and local levels. Oxford University Press « Previous | Next Article » Table of Contents This Article Oxf Rev Econ Policy (1998) 14 (2): 18-29. doi: 10.1093/oxrep/14.2.18 » Abstract Free Full Text (PDF) Free Classifications Article Services Article metrics Alert me when cited Alert me if corrected Find similar articles Similar articles in Web of Science Add to my archive Download citation Request Permissions Citing Articles Load citing article information Citing articles via CrossRef Citing articles via Scopus Citing articles via Web of Science Citing articles via Google Scholar Google Scholar Articles by Audretsch, B. Search for related content Related Content O31 - Innovation and Invention: Processes and Incentives R12 - Size and Spatial Distributions of Regional Economic Activity Load related web page information Share Email this article CiteULike Delicious Facebook Google+ Mendeley Twitter What's this? Search this journal: Advanced » Current Issue SUMMER 2015 31 (2) Alert me to new issues The Journal About this journal Rights & Permissions Dispatch date of the next issue We are mobile – find out more This journal is a member of the Committee on Publication Ethics (COPE) Journals Career Network Published on behalf of The Oxford Review of Economic Policy Ltd Impact factor: 1.042 5-Yr impact factor: 1.347 Managing Editor Cameron Hepburn View full editorial board For Authors Instructions to authors Self archiving policy Alerting Services Email table of contents CiteTrack XML RSS feed PDA Access Corporate Services Advertising sales Reprints Supplements var taxonomies = ("SOC00790", "SOC01830", "SOC02330", "SOC02380"); Most Most Read The economic record of the 1997-2010 Labour government: an assessment Relative prices, consumer preferences, and the demand for food American Education Research Changes Tack Regulatory Capture: A Review Environmental policy, government, and the market » View all Most Read articles Most Cited THE FAILURE OF TRAINING IN BRITAIN: ANALYSIS AND PRESCRIPTION Risks at Work: The Demand and Supply Sides of Government Redistribution WAGE DETERMINATION: THE CHANGING ROLE OF INSTITUTIONS IN ADVANCED INDUSTRIALIZED COUNTRIES Gender Role Attitudes and the Labour-market Outcomes of Women across OECD Countries What's new about the new economic geography? » View all Most Cited articles Disclaimer: Please note that abstracts for content published before 1996 were created through digital scanning and may therefore not exactly replicate the text of the original print issues. All efforts have been made to ensure accuracy, but the Publisher will not be held responsible for any remaining inaccuracies. If you require any further clarification, please contact our Customer Services Department. 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Agglomeration and the location of innovative activity

Oxford Review of Economic Policy , Volume 14 (2) – Jun 1, 1998

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References (28)

Publisher
Oxford University Press
Copyright
Copyright © 2015 Oxford Review of Economic Policy Ltd and Oxford University Press
ISSN
0266-903X
eISSN
1460-2121
DOI
10.1093/oxrep/14.2.18
Publisher site
See Article on Publisher Site

Abstract

A paradox has been the emergence of the importance of local proximity and geographic clusters precisely at a time when globalization seems to dominate economic activity. The purpose of this paper is to resolve this paradox by explaining why and how geography matters for innovative activity and ultimately for the international comparative advantage. Globalization and the telecommunications revolution have triggered a shift in the comparative advantage of the leading developed countries towards an increased importance of innovative activity. This shift in comparative advantage has increased the value of knowledge-based economic activity. Since knowledge is generated and transmitted more efficiently via local proximity, economic activity based on new knowledge has a high propensity to cluster within a geographic region. This has triggered a fundamental shift in public policy towards business, away from policies constraining the freedom of firms to contract and towards a new set of enabling policies, implemented at the regional and local levels. Oxford University Press « Previous | Next Article » Table of Contents This Article Oxf Rev Econ Policy (1998) 14 (2): 18-29. doi: 10.1093/oxrep/14.2.18 » Abstract Free Full Text (PDF) Free Classifications Article Services Article metrics Alert me when cited Alert me if corrected Find similar articles Similar articles in Web of Science Add to my archive Download citation Request Permissions Citing Articles Load citing article information Citing articles via CrossRef Citing articles via Scopus Citing articles via Web of Science Citing articles via Google Scholar Google Scholar Articles by Audretsch, B. Search for related content Related Content O31 - Innovation and Invention: Processes and Incentives R12 - Size and Spatial Distributions of Regional Economic Activity Load related web page information Share Email this article CiteULike Delicious Facebook Google+ Mendeley Twitter What's this? Search this journal: Advanced » Current Issue SUMMER 2015 31 (2) Alert me to new issues The Journal About this journal Rights & Permissions Dispatch date of the next issue We are mobile – find out more This journal is a member of the Committee on Publication Ethics (COPE) Journals Career Network Published on behalf of The Oxford Review of Economic Policy Ltd Impact factor: 1.042 5-Yr impact factor: 1.347 Managing Editor Cameron Hepburn View full editorial board For Authors Instructions to authors Self archiving policy Alerting Services Email table of contents CiteTrack XML RSS feed PDA Access Corporate Services Advertising sales Reprints Supplements var taxonomies = ("SOC00790", "SOC01830", "SOC02330", "SOC02380"); Most Most Read The economic record of the 1997-2010 Labour government: an assessment Relative prices, consumer preferences, and the demand for food American Education Research Changes Tack Regulatory Capture: A Review Environmental policy, government, and the market » View all Most Read articles Most Cited THE FAILURE OF TRAINING IN BRITAIN: ANALYSIS AND PRESCRIPTION Risks at Work: The Demand and Supply Sides of Government Redistribution WAGE DETERMINATION: THE CHANGING ROLE OF INSTITUTIONS IN ADVANCED INDUSTRIALIZED COUNTRIES Gender Role Attitudes and the Labour-market Outcomes of Women across OECD Countries What's new about the new economic geography? » View all Most Cited articles Disclaimer: Please note that abstracts for content published before 1996 were created through digital scanning and may therefore not exactly replicate the text of the original print issues. All efforts have been made to ensure accuracy, but the Publisher will not be held responsible for any remaining inaccuracies. If you require any further clarification, please contact our Customer Services Department. Online ISSN 1460-2121 - Print ISSN 0266-903X Copyright © 2015 Oxford Review of Economic Policy Ltd and Oxford University Press Oxford Journals Oxford University Press Site Map Privacy Policy Cookie Policy Legal Notices Frequently Asked Questions Other Oxford University Press sites: Oxford University Press Oxford Journals China Oxford Journals Japan Academic & Professional books Children's & Schools Books Dictionaries & Reference Dictionary of National Biography Digital Reference English Language Teaching Higher Education Textbooks International Education Unit Law Medicine Music Online Products & Publishing Oxford Bibliographies Online Oxford Dictionaries Online Oxford English Dictionary Oxford Language Dictionaries Online Oxford Scholarship Online Reference Rights and Permissions Resources for Retailers & Wholesalers Resources for the Healthcare Industry Very Short Introductions World's Classics function fnc_onDomLoaded() { var query_context = getQueryContext(); PF_initOIUnderbar(query_context,":QS:default","","JRN"); PF_insertOIUnderbar(0); }; if (window.addEventListener) { window.addEventListener('load', fnc_onDomLoaded, false); } else if (window.attachEvent) { window.attachEvent('onload', fnc_onDomLoaded); } var gaJsHost = (("https:" == document.location.protocol) ? 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Journal

Oxford Review of Economic PolicyOxford University Press

Published: Jun 1, 1998

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