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When Buzz and Pipelines Fail

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  • Christopher Esposito
  • David Rigby

Abstract

Explanations for why some cities outperform others frequently rest on the assumed benefits of local and global interaction. Within the 'buzz and pipelines' literature, the costs and returns to interaction have rarely been examined in formal settings. In this paper we extend research on knowledge sharing by modeling local and global interactions between firms distributed across city-regions. Our simulation model develops an evolutionary framework where firms explore and exploit knowledge sets that are accumulated over time by recombining technologies held by local and non-local firms. Our results make two contributions to the existing literature. First, we show why too much local interaction can induce technological lock-in and restrict citiesÕ innovative growth. Second, we illustrate that non-local interaction entails opportunity costs that can outweigh its benefits. Together, the results unearth the conditions under which local and non- local interactions strengthen the economies of cities and when they fail to do so.

Suggested Citation

  • Christopher Esposito & David Rigby, 2017. "When Buzz and Pipelines Fail," Papers in Evolutionary Economic Geography (PEEG) 1701, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2017.
    • Handle: RePEc:egu:wpaper:1701
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    More about this item

    Keywords

    regional economic growth; innovation; networks; computer simulation;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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