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An Expanded Knowledge Production Function: Evidence from Brazil with a Dynamic Spatial Panel Approach

Abstract

This paper uses a theoretical motivation for an Expanded Knowledge Production Function (EKPF) that encompasses both path dependence and spatial spillovers to search for evidences in Brazil using a Dynamic Spatial Panel Data approach. The purpose is to identify the determinants of knowledge production in the 2005-2015 period as well as its temporal evolution, using innovation patents as proxies. Regarding its spatial distribution, we identified a North-South disparity for the knowledge production in Brazil, with Southeast and South producing a large part of the country's patents. Based on the EKPF, we confirmed the importance of path dependence and knowledge spillovers to explain the Brazilian innovation. In addition, population density, which generates Jacobian externalities and economies of agglomeration, is an important structural feature in the short run while the number of researchers in universities and an increased economic scale are essential to knowledge production in the long run.

Keywords:
Knowledge Production Function (KPF); Path Dependence; Spatial Spillover; Dynamic Spatial Panel

Universidade Estadual de Campinas Rua: Carlos Gomes, 250. Bairro Cidade Universitária, Cep: 13083-855 , Campinas - SP / Brasil , Tel: +55 (19) 3521-5176 - Campinas - SP - Brazil
E-mail: rbi@unicamp.br