Total factor productivity effects of interregional knowledge spillovers in manufacturing industries across Europe
AbstractThe objective of this study is to identify knowledge spillovers that spread across regions in Europe and vary in magnitude for different industries. The study uses a panel of 203 NUTS-2 regions covering the 15 pre-2004 EU-member-states to estimate the impact over the period 1998-2003, and distinguish between five major industries. The study implements a fixed effects panel data regression model with spatial autocorrelation to estimate effects using patent applications as a measure of R&D output to capture the contribution of R&D (direct and spilled-over) to regional productivity at the industry level. The results suggest that interregional knowledge spillovers and their productivity effects are to a substantial degree geographically localised and this finding is consistent with the localisation hypothesis of knowledge spillovers. There is a substantial amount of heterogeneity across industries with evidence that two industries (electronics, and chemical industries) produce interregional knowledge spillovers that have positive and highly significant productivity effects. The study, moreover, confirms the importance of spatial autoregressive disturbance in the fixed effects model for measuring the TFP impact of interregional knowledge spillovers at the industry level.
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Bibliographic InfoArticle provided by Romanian Regional Science Association in its journal Romanian Journal of Regional Science.
Volume (Year): 1 (2007)
Issue (Month): 1 (December)
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Web page: http://www.rrsa.ro
Total factor productivity; manufacturing industries; knowledge spillovers; patents; European regions; spatial econometrics;
Find related papers by JEL classification:
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
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