Why Are Technological Spillovers Spatially Bounded ? a Market Orientated Approach

  title={Why Are Technological Spillovers Spatially Bounded ? a Market Orientated Approach},
  author={Edmond Baranes and Jean-Philippe TROPEANO Cahier}
According to empirical evidence, technological spillovers are spatially bounded. This is one of the main reasons why Þrms are induced to locate in close prox-imity despite tough competition. This paper is an attempt to endogenize such spillovers. For that purpose, we try to explain why spatial proximity gives more incentives to competing Þrms to share knowledge. We show that spatial proxim-ity is the best way for Þrms to prevent free-riding in case of knowledge sharing. Indeed, Þercer… CONTINUE READING

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