Abstract
In this paper we investigate the innovativeness of a network of firms, each of which can experience innovation spillovers (i.e. technological externalities) from its neighbours. A cellular automata framework is used to provide a new theoretical
method for analysing such networks. Considering network spillovers produces a nonlinear relationship between the strength
of spillovers and overall innovativeness, as opposed to the linear relationship we demonstrate in a standard representative firm model. The network model also allows a theoretical comparison of the common localised spillovers methodology of empirical studies with the global spillovers assumption typical of many endogenous growth models. We find that localised spillovers are not a simple size proportional scaling of the global case.
method for analysing such networks. Considering network spillovers produces a nonlinear relationship between the strength
of spillovers and overall innovativeness, as opposed to the linear relationship we demonstrate in a standard representative firm model. The network model also allows a theoretical comparison of the common localised spillovers methodology of empirical studies with the global spillovers assumption typical of many endogenous growth models. We find that localised spillovers are not a simple size proportional scaling of the global case.
| Original language | English |
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| Place of Publication | Australia |
| Publisher | University of New South Wales |
| Number of pages | 34 |
| ISBN (Print) | 0733416519 |
| Publication status | Unpublished - Oct 1997 |