Modelling the spatial and sectoral benefits of productivity enhancing innovations using a transport oriented multiregional IO framework: the ‘megatruck’ in Spain

We render operational the model outlined by Carter (1990) via introduction of research methods necessary for studying spatial and sectoral (upstream downstream) benefits productivity-enhancing innovations within a real interregional input–output framework. As case study we examine reduction in production costs derived from adoption longer heavier vehicles freight road transportation. exploit new Spanish regional table including detailed disaggregation transportation sector. The productivity gains at national level, resulting 30% transport costs, amount to 2.95% GVA market prices. Results show that firms operating this niche appropriate most gross operation surplus (which increases 10%), consistent with existence power. remaining sectors see profits slightly worsened, suggesting limited substitution effects. A high heterogeneity exists because different structures.