Template-type: ReDIF-Paper 1.0
uthor-Name: Antonelli, Cristiano
Author-Email: cristiano.antonelli@unito.it
Author-Name: Patrucco, Pier Paolo
Author-Email: pierpaolo.patrucco@unito.it
Author-Name: Quatraro, Francesco
Author-Email: francesco.quatraro@unice.fr 
Author-Workplace-Name: University of Turin
Author-Workplace-Homepage: http://www.est.unito.it/
Title: Pecuniary Knowledge Externalities: Evidence from European Regions.
Abstract: The paper investigates the effects of agglomeration and specialization of technological activities on 
regional productivity growth,applying the notion of pecuniary knowledge externalities. The latter are indirect 
interdependencies between firms mediated by the price system. Pecuniary knowledge externalities enable to 
appreciate both the positive and negative effects associated with the regional concentration of knowledge 
generating activities. Our analysis leads to specify the hypothesis of an inverted U-shaped relationship between 
the agglomeration of innovation activities and productivity growth. The empirical investigation, based upon 138 
European regions in the years 1996 through 2003, supports the hypothesis that agglomeration yields diminishing 
positive net effects beyond a maximum. The homogeneity of knowledge generating activities however reduces absorption
costs and hence rises the net benefits at each agglomeration level.
Length: 31 pages
Creation-Date: 2008-07
File-URL: http://www.est.unito.it/do/home.pl/Download?doc=/allegati_wp/wp2008dip_l_b/3_wp_momigliano.pdf
File-Format: Application/PDF
Handle: RePEc:uto:labeco:200803