Geography Reference
In-Depth Information
Net positive
knowledge of
externality (
V
)
V
1
Efects of knowledge
externalities on revenue
(
KR
)
V
2
V
3
(
AC
)
Efects of knowledge
externalities on costs
(
AC
)
(
KR
)
N
dN
N
N
t
Figure 7
.
4
The dynamics of the pecuniary knowledge externalities trade-of and the
S- shaped dif usion process of innovation systems
tion systems, characterized by the structure of communication channels and knowledge
complementarities, exhibit dynamic features (Durlauf, 2005; Frenken, 2006; Guiso and
Schivardi, 2007).
An understanding of the ef ects of pecuniary knowledge externalities in shaping the
direction of technological change makes it possible to explain, at one and the same time,
the convergence of the technological paths of i rms towards local pools of complemen-
tary knowledge and the emergence of structured systems of innovation based on the local
availability of distinctive sources of both tangible and intangible inputs (Durlauf and
Johnson, 1992).
In this light, local and sectoral systems of innovation are no longer the exogenous
result of fortuitous, institutional blending (Boschma, 2005; Malerba, 2005). They can be
