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Interplay between regional and industrial aspects in the R&D–productivity link: evidence from Europe

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  • Paula Prenzel
  • Raquel Ortega-Argilés
  • Claudio Cozza
  • Mariacristina Piva

Abstract

Interplay between regional and industrial aspects in the R&D–productivity link: evidence from Europe. Regional Studies. The paper tests the effect of the interplay between regional and sectoral dimensions in the firm-level research and development (R&D)–productivity link. Using a longitudinal database of innovative publicly traded European companies between 1991 and 2008, the following main results arise. First, the elasticity of value added with respect to R&D is larger in regions characterized by a higher innovation performance (knowledge hubs versus industrial zones). Second, in knowledge hubs, industry affiliation mediates the gains from R&D: high-tech manufacturing firms profit more from R&D than low-tech ones. This evidence suggests that an innovative regional environment increases the capacity to translate R&D investments into productivity for European high-tech industries. This virtuous circle is not at work in services and in low-tech manufacturing industries.

Suggested Citation

  • Paula Prenzel & Raquel Ortega-Argilés & Claudio Cozza & Mariacristina Piva, 2018. "Interplay between regional and industrial aspects in the R&D–productivity link: evidence from Europe," Regional Studies, Taylor & Francis Journals, vol. 52(5), pages 659-672, May.
    • Handle: RePEc:taf:regstd:v:52:y:2018:i:5:p:659-672
    DOI: 10.1080/00343404.2017.1329586
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    Cited by:

    1. Raquel Ortega-Argilés, 2022. "The evolution of regional entrepreneurship policies: “no one size fits all”," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(3), pages 585-610, December.
    2. Agustí Segarra-Blasco & Josep-Maria Arauzo-Carod & Mercedes Teruel, 2018. "Innovation and geographical spillovers: new approaches and empirical evidence," Regional Studies, Taylor & Francis Journals, vol. 52(5), pages 603-607, May.
    3. Orea, Luis & Álvarez, Inmaculada C., 2019. "Spatial Production Economics," Efficiency Series Papers 2019/06, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    4. Frank Crowley & Declan Jordan, 2022. "Do local start-ups and knowledge spillovers matter for firm-level R&D investment?," Urban Studies, Urban Studies Journal Limited, vol. 59(5), pages 1085-1102, April.

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