Abstract
Mainstream economics treats spillovers as a positive “externality,” a term introduced by Alfred Marshall (1890) to account for the extra value creation (or the opposite, negative externalities) that could not be explained within the theoretical framework of the standard (and static) economic (Walrasian) model. Marshall, being at the time the authority on the Walrasian model, was concerned about this deficiency of the received model of economics that was increasingly becoming the standard intake in graduate economics teaching among western universities. He wanted to internalize (“explain”) the spillovers, but without abandoning the standard model altogether and exposing himself to the wrath of his colleagues.
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Eliasson, G. (2010). Spillovers and Innovative Technology Supply: A Literature Survey. In: Advanced Public Procurement as Industrial Policy. Economics of Science, Technology and Innovation, vol 34. Springer, New York, NY. https://doi.org/10.1007/978-1-4419-5849-5_3
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