Abstract
This paper discusses a model of the New Economic Geography, in which the
seminal core-periphery model of Krugman (1991) is extended by endogenous
research activities. Beyond the common ’anonymous’ consideration of R&D
expenditures within fixed costs, this model introduces vertical product differentiation,
which requires services provided by an additional R&D sector. In
the context of international factor mobility, the destabilizing effects of a mobile
scientific workforce are analyzed. In combination with a welfare analysis and
a consideration of R&D promoting policy instruments and their spatial implications,
this paper makes a contribution to the so-called brain drain debate.
| Original language | English |
|---|---|
| Place of Publication | Lüneburg |
| Publisher | Institut für Volkswirtschaftslehre der Universität Lüneburg |
| Number of pages | 44 |
| Publication status | Published - 2008 |
Bibliographical note
Literaturverz. S. 35 - 37Research areas and keywords
- Economics
- R&D
- New Economic Geography
- Vertical differentiation
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