Abstract
This chapter discusses the relationship between, on the one hand, the knowledge economy’s social capital and innovativeness and, on the other hand, the new economic geography, which mainly is valid for the manufacturing economy. The discussion ends up in a proposition for a “new economic geography 2 model,” in which the knowledge producing sector and its relations to other sectors are modelled in a framework of two or more regions. The overarching mechanisms and results are similar in the two models: cumulative causation create and enhance regional disparities, but the processes are partly different. It may seem somewhat paradoxical that the industrial specialization, which is a result of the original new economic geography model, in the new model is replaced by “specialization in diversification,” but the knowledge economy’s specialization is “subtle” and diverse – and, as it seems, with subsectors related to and dependent on each other. This is all a reflection of the proposition that social capital and innovativeness play a much larger role for growth and development in the knowledge economy than they did in the manufacturing economy.
References
Andersson M, Karlsson C (2004) Regional innovation systems in small and medium-sized regions. A critical review and assessment. In: Johansson B, Karlsson C, Stough RR (eds) The emerging digital economy: entrepreneurship, clusters and policy. Springer, Berlin, pp 55–81
Berliant M, Fujita M (2009) Dynamics of knowledge creation and transfer: the two person case. International Journal of Economic Theory 5:155–179
Broekel T et al (2014) Modeling knowledge networks in economic geography: a discussion of four models. Ann Reg Sci 53:423–452
Duranton G, Puga D (2001) Nursery cities: urban diversity, process innovation, and the life cycle of products. Am Econ Rev 91:1454–1477
Frenken K, van Oort F, Verburg T (2007) Related variety, unrelated variety and regional economic growth. Reg Stud 41:685–697
Fujita M (2007) Towards the new economic geography in the brain power society. Reg Sci Urban Econ 37:482–490
Fujita M, Thisse J-F (2013) Economics of agglomeration: cities, industrial location and globalization, 2nd edn. Cambridge University Press, Cambridge
Fujita M, Krugman P, Venables A (1999) The spatial economy. Cities, regions and international trade. The MIT Press, Cambridge, MA
Gaspar JM (2018) A prospective review of new economic geography. Ann Reg Sci 61:237–272
Grabher G, Ibert O (2014) Distance as asset? Knowledge collaboration in hybrid virtual communities. J Econ Geogr 14:97–123
Griliches Z (1986) Productivity, R&D and basic research at the firm level in the 1970s. Am Econ Rev 76:141–154
Hayek F (1945) The use of knowledge in society. Am Econ Rev 35:19–30
Henderson JV (1974) The size and types of cities. Am Econ Rev 89:640–656
Jaffe A, Trajtenberg M, Henderson R (1993) Geographical localisation of knowledge spillovers as evidenced by patent citations. Q J Econ 108:577–598
Johansson B, Karlsson C (2001) Geographic transaction costs and specialization opportunities of small and medium-sized regions: scale economies and transaction costs. In: Johansson B, Karlsson C, Stough RR (eds) Theories of endogenous regional growth – lessons for regional policies. Springer, Berlin, pp 150–180
Kourtit K, Gordon P (2019) Spatial clusters and regional development. In: Handbook of regional growth and development theories: revised and extended, 2nd edn. Springer, Berlin
Krugman P (1991) Geography and trade. The MIT Press, Cambridge, MA
Krugman P (1993) The hub effect: or, threeness in international trade. In: Ethier WJ, Helpman E, Neary JP (eds) Theory, policy and dynamics in international trade. Cambridge University Press, Cambridge, pp 29–37
Krugman P (2011) The new economic geography, now middle-aged. Reg Stud 45:1–7
Marshall A (1920) Principles of economics, 8th edn. Macmillan, London
Myrdal G (1957) Economic theory and underdeveloped regions. Duckworth, London
Ohlin B (1933) Interregional and international trade. Harvard University Press, Cambridge, MA
Ottaviano G, Parolo G (2009) Cultural identity and knowledge creation in cosmopolitan cities. J Reg Sci 49:647–662
Putnam RD (1993) What makes democracy work? Natl Civ Rev 82:101–109
Rodriguez-Pose A, Crescenzi R (2008) Research and development, spillovers, innovation systems and the genesis of regional growth in Europe. Reg Stud 42:51–67
Romer PM (1990) Endogenous technological change. J Polit Econ 98:97–103
Storper M, Venables AJ (2004) Buzz: face-to-face contact and the urban economy. J Econ Geogr 4:351–370
Westlund H (2006) Social capital in the knowledge economy. Springer, Berlin/Heidelberg/New York
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2020 Springer-Verlag GmbH Germany, part of Springer Nature
About this entry
Cite this entry
Karlsson, C., Westlund, H. (2020). Social Capital, Innovativeness and the New Economic Geography. In: Fischer, M., Nijkamp, P. (eds) Handbook of Regional Science. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-36203-3_149-1
Download citation
DOI: https://doi.org/10.1007/978-3-642-36203-3_149-1
Received:
Accepted:
Published:
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-36203-3
Online ISBN: 978-3-642-36203-3
eBook Packages: Springer Reference Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences