Abstract
We examine the structure of the knowledge network to investigate the role of organizational learning in production activities. We develop a knowledge learning model in an industrial sector based in a competitive framework. The contribution of learning is modeled as a Cobb-Douglas production function with interactions. The welfare performance of the industrial sector is evaluated by aggregate profit. The dynamic processes of the knowledge network are analyzed with the interactive firms maximizing profits as a non-cooperative game. In the numerical simulation, the relationship between the time delay of interactive learning and the distance decay of knowledge spillovers in a space is explored. The optimal size of a learning region is shown.
JEL Classification: C70, D83, O31, R11, R15
