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Innovation and Regional Growth in the Enlarged Europe: The Role of Local Innovative Capabilities, Peripherality, and Education

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  • RICCARDO CRESCENZI

Abstract

In this paper, a formal model for the relationship between innovation and growth in European Union regions is developed drawing upon the theoretical contribution of the systems of innovation approach. The model combines the analytical approach of the regional growth models with the insights of the systemic approach. The cross-sectional analysis, covering all the Enlarged Europe (EU-25) regions (for which data are available), shows that regional innovative activities (for which a specific measure is developed) play a significant role in determining differential regional growth patterns. Furthermore, the model sheds light on how geographical accessibility and human capital accumulation, by shaping the regional system of innovation, interact (in a statistically significant way) with local innovative activities, thus allowing them to be more (or less) effectively translated into economic growth. The paper shows that an increase in innovative effort is not necessarily likely to produce the same effect in all EU-25 regions. Indeed, the empirical analysis suggests that in order to allow innovative efforts in peripheral regions to be as productive as in core areas, they need to be complemented by huge investments in human capital. Copyright 2005 Blackwell Publishing Ltd..

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Bibliographic Info

Article provided by Gatton College of Business and Economics, University of Kentucky in its journal Growth and Change.

Volume (Year): 36 (2005)
Issue (Month): 4 ()
Pages: 471-507

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Handle: RePEc:bla:growch:v:36:y:2005:i:4:p:471-507

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0017-4815

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Cited by:
  1. Gianni Guastella & Francesco Timpano, 2012. "Increasing Returns, Decreasing Returns and Regional Economic Convergence in the EU," ERSA conference papers ersa12p344, European Regional Science Association.
  2. Roberto EZCURRA, 2013. "Polarization Trends Across The European Regions," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 38, pages 11-26.
  3. Richard Harris, 2008. "Models of regional growth: past, present and future," LSE Research Online Documents on Economics 33146, London School of Economics and Political Science, LSE Library.
  4. Andrés Rodríguez-Pose & Riccardo Crescenzi, 2008. "Research and development, spillovers, innovation systems, and the genesis of regional growth in Europe," LSE Research Online Documents on Economics 23326, London School of Economics and Political Science, LSE Library.
  5. Richard Harris, 2008. "Models of Regional Growth: Past, Present and Future," SERC Discussion Papers 0002, Spatial Economics Research Centre, LSE.
  6. Donata Favaro & Eniel Ninka & Margherita Turvani, 2011. "Human capital, technology intensity and growth in a regional context," ERSA conference papers ersa10p687, European Regional Science Association.
  7. Agata Pradela, 2012. "Career Development Of School Graduates In The Aspect Of Creation Of Innovative Economy – Polish Experiences," ERSA conference papers ersa12p282, European Regional Science Association.
  8. Fratesi, Ugo, 2007. "The Spatial Diffusion of Innovations and the Evolution of Regional Disparities," Investigaciones Regionales, Asociación Española de Ciencia Regional, issue 11, pages 131-160.
  9. Riccardo Crescenzi & Fabrizio De Filippis & Fabio Pierangeli, 2011. "Synergies and conflicts between EU policies and the objective of territorial cohesion," Departmental Working Papers of Economics - University 'Roma Tre' 0132, Department of Economics - University Roma Tre.
  10. Riccardo Crescenzi & Andrés Rodríguez-Pose, 2012. "An ‘Integrated’ Framework For The Comparative Analysis Of The Territorial Innovation Dynamics Of Developed And Emerging Countries," Journal of Economic Surveys, Wiley Blackwell, vol. 26(3), pages 517-533, 07.
  11. Mariasole Bannò & Celeste Amorim Varum & Valentina Morandi, 2011. "Public policy for innovation and internationalisation: are they worth it?," ERSA conference papers ersa11p457, European Regional Science Association.
  12. Fallah, Belal & Partridge, Mark, 2012. "Geography and high-tech employment growth in U.S. counties," MPRA Paper 38294, University Library of Munich, Germany.
  13. Francesco Aiello & Paola Cardamone, 2010. "Regional Economic Divide And The Role Of Technological Spillovers In Italy. Evidence From Microdata," Working Papers 201010, Università della Calabria, Dipartimento di Economia, Statistica e Finanza (Ex Dipartimento di Economia e Statistica).
  14. Aiello, Francesco & Pupo, Valeria, 2012. "Structural funds and the economic divide in Italy," Journal of Policy Modeling, Elsevier, vol. 34(3), pages 403-418.
  15. María Alejandra Molina, 2011. "A Sectoral System of Innovation Analysis of Technological Upgrading in the Food Processing Sector in Argentina, Brazil and Chile," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 3(2), pages 287-325, July.
  16. Juliana Dahl, 2013. "Innovation and Growth in Regions with Specific Geographical Features," Kiel Advanced Studies Working Papers 463, Kiel Institute for the World Economy.

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