An expanded knowledge production function

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 inBrazil using a Dynamic Spatial Panel Data approach. The purpose is to identify the determinantsof knowledge production in the 2005-2015 period as well as its temporal evolution, usinginnovation patents as proxies. Regarding its spatial distribution, we identified a North-Southdisparity for the knowledge production in Brazil, with Southeast and South producing alarge part of the country’s patents. Based on the EKPF, we confirmed the importance ofpath dependence and knowledge spillovers to explain the Brazilian innovation. In addition,population density, which generates Jacobian externalities and economies of agglomeration, isan important structural feature in the short run while the number of researchers in universitiesand an increased economic scale are essential to knowledge production in the long run.