Modern industrial districts or science parks are designed to accommodate hightech upstream firms, which provide an environment that fosters location-dependent knowledge spillovers and promote R&D investments by firms. Yet, not much is known about the economic conditions under which such districts may form. This paper develops a general equilibrium model with a competitive final sector and a monopolistic competitive intermediate sector, which allows us to determine necessary and sufficient conditions for one or several districts to emerge. When a science park arises as a market equilibrium configuration, we find that the output in the final sector and workers' well-being is higher than the comparable figures under alternative equilibrium configurations.
2009貿易、產業與區域經濟國際學術研討會論文集=Proceedings of 2009 International Conference on Trade, Industrial and Regional Economics，37頁