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articles: Is R&D investment in lagging areas of Europe worthwhile? Theory and empirical evidence

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  • Andrés Rodríguez-Pose

    ()
    (Department of Geography and Environment, London School of Economics, Houghton Street, London WC2A 2AE, UK)

Abstract

Is R&D investment in lagging areas worthwhile? There is no simple answer, nor is there universal theoretical agreement on the question. The Schumpeterian strand of the endogenous growth approach highlights the advantages of spatially concentrating the research and development (R&D) effort in a few areas, in order to maximise external economies and technological spillovers. Innovation is then expected to spill over from these technologically advanced areas into neighbouring regions . The neoclassical view, in contrast, considers that decreasing returns render investment in core areas increasingly less efficient, and makes investment in peripheries more effective. The regional policy view holds that public investment in R&D in lagging regions triggers economic convergence, because it limits congestion in the centre, helps to keep talent, and generates spin-offs in lagging areas. This article surveys these strands and highlights the advantages and disadvantages of investing in R& ;D in lagging regions. I then turn to the evolution of R&D investment across regions in Western Europe.

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Bibliographic Info

Article provided by Springer in its journal Papers in Regional Science.

Volume (Year): 80 (2001)
Issue (Month): 3 ()
Pages: 275-295

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Handle: RePEc:spr:presci:v:80:y:2001:i:3:p:275-295

Note: Received: 7 October 2000
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Related research

Keywords: R&D; technology; spillovers; economic growth; regions; Western Europe;

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Cited by:
  1. Gündüz Atalik & Seda Kundak, 2004. "Effects of innovation diffusion on the development level for some European regions in the expansion period of the European Union," ERSA conference papers ersa04p30, European Regional Science Association.
  2. Ugo Fratesi, 2003. "Innovation Diffusion and the Evolution of Regional Disparities," ERSA conference papers ersa03p327, European Regional Science Association.
  3. Rosina Moreno & Raffaele Paci & Stefano Usai, 2004. "Innovation and production clusters in Europe," ERSA conference papers ersa04p587, European Regional Science Association.
  4. Paolo Guerrieri & Simona Iammarino, 2003. "The Dynamics of Export Specialisation in the Regions of the Italian Mezzogiorno: Persistence and Change," SPRU Working Paper Series 105, SPRU - Science and Technology Policy Research, University of Sussex.
  5. 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.
  6. López-Rodríguez , Jesús & Faíña, Andrés, 2007. "Regional Wage Disparities in Europe: What role for Market Access?," Investigaciones Regionales, Asociación Española de Ciencia Regional, issue 11, pages 5-23.

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