Template-type: ReDif-Paper 1.0 Author-Name: Caniëls, Marjolein Author-Name: Verspagen, Bart Author-workplace-name: MERIT Title: Spatial distance in a technology gap model Abstract: This paper analyses the effect of locally bounded knowledge spillovers on regionaldifferences in growth. A model will be developed that allows spillovers to take place acrossregions. Certain conditions determine the amount of spillovers a region receives. By use ofsimulations (with randomised parameter constellations), it is possible to examine the generalbehaviour of the model. It is found that certain patterns in the gaps of the knowledge stocksappear repeatedly. The inclusion of geographical distance in a technology gap model leads tothe observation that when differences (in parameters such as the learning capability or theexogenous rate of knowledge generation) increase across regions, the disparity in terms ofGDP per capita between them decreases. This counterintuitive result is a direct effect from theinclusion of geographical distance in the model. Keywords: regional and urban economics ; Series: Research Memoranda Creation-Date: 1999 Number: 021 File-URL: https://unu-merit.nl/publications/rmpdf/1999/rm1999-021.pdf File-Format: application/pdf File-Size: 295459 Handle: RePEc:unm:umamer:1999021