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Nils Grashof and Thomas Brenner

Spurred by their outstanding economic opportunities, radical innovations, emerging from the recombination of former unconnected knowledge, have received increasing attention by policy makers and researchers alike. To support innovations in general, policy makers have mainly focussed on fostering the interaction within regional clusters, thereby assuming that localisation externalities only function efficiently on short geographical distances. By implementing cross-cluster as well as internationalisation measures, only recently efforts were undertaken to move beyond the geographical boundaries of clusters. While the importance of extra-local knowledge on innovativeness in general has already been highlighted, it remains unclear whether this holds also true for innovations that are rather radical in nature. Thus, we lack knowledge about which type of relationship is particularly promoting the emergence of radical innovations in regional clusters. In order to address this research gap empirically, we apply a quantitative approach on the firm-level and combine several data sources (e.g. AMADEUS, PATSTAT, German subsidy catalogue). Our results provide evidence for the stimulating effect of cluster external relationships as well as for the assumed benefits of cross-cluster relationships. By further differentiating the types of relationships according to the geographical and thematic characteristics, it can for instance be additionally determined that firms having cross-cluster relationships with thematically and regional different partners are most likely to create radical innovations. Our findings emphasize the promising potential of cross-cluster initiatives and the need to adjust the composition of these relationships according to different thematic and geographic backgrounds of the corresponding collaboration partners.

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Andrew Johnston and Robert Huggins

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Andrew Johnston and Robert Huggins

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Yasuyuki Motoyama

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Yasuyuki Motoyama

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Martin Jones

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Edited by John R. Bryson, Lauren Andres and Rachel Mulhall

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Yulai Wan and Anming Zhang

An airport’s capacity is in general indivisible and hence cannot be adjusted continuously, while the demand for airport services tends to increase over time as with the growing economy. Consequently, when new runways are completed, they are likely under-utilized, but as traffic increases over time, congestion occurs. It may therefore be optimal to vary airport charges over time by keeping charges low at the early stage of the infrastructure life cycle and raising charges towards the end of its life cycle. This chapter discusses the benefits of time-dependent charges by considering the airport’s economic impacts as well as the changing economic environment, such as the unemployment level. The analysis is based on a case study of Hong Kong International Airport. The authors attempt to demonstrate quantitatively the above airport pricing strategy, and to further show how to conduct a real-case cost-benefit analysis of airport pricing for policy application.

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Keisuke Sato and Atsushi Koike

The Spatial Computable General Equilibrium (CGE) model is one of the powerful tools to understand the regional economic effects on transport development. In this model, Armington elasticities are known to be important for the properties of model behavior but are seldom estimated empirically in the domestic area. Armington elasticities in multi-regional trade in Japan are estimated in this chapter. The estimated elasticities are intended for use in the Spatial CGE model for transport policy. The authors suggest that estimation is possible for Japan, for which economic data are generally considered poor, provided appropriate account is taken of transport cost.