Knowledge triggers regional growth. Evidence suggests that skilled labour force concentrates in islands of innovation … increasing returns to knowledge, favouring the emergence of islands of innovation; regions with a high endowment of cognitive …

policies and measurement methods; development theories of innovation, knowledge and space, and regional production factors; and …

We study innovation and the resulting Schumpeterian economic growth that this innovation gives rise to in a model with … balanced growth path (BGP) allocations and the equilibrium of interest. Second, we stipulate the form of the innovation … circumstances in which there is either too much or too little innovation in (i) the ith region, (ii) the aggregate economy of N>2 …

deterministic model, R&D in time t surely leads to an innovation in time t 1. In this setting, we show that relative to the balanced … innovation and a higher growth rate. Next, in the stochastic model, R&D in time t probabilistically leads to an innovation in …

. In the deterministic model, R&D in time t surely leads to an innovation in time t þ 1. In this setting, the authors show … hence achieves a larger size of innovation and a higher growth rate. Next, in the stochastic model, R&D in time t … probabilistically leads to an innovation in time t 1. In this setting, the authors first define the equilibrium and the steady state BGP …