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Does Agglomeration Boost Innovation? An Econometric Evaluation

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  • Megha Mukim

Abstract

Innovation is crucial to regional economic competitiveness and to productivity growth. A salient feature of the Indian economy is the geographic clustering of both economic activity and innovation. In this paper, I study to what extent the spatial distribution of economic activity drives innovation. I analyse patent applications between 1999 and 2007 across districts in India and my econometric findings suggest that R&D expenditures, industrial diversity and the distribution of human capital endowments can have an important effect on generating innovation. The estimates are robust to omitted variables bias, to different model specifications and to the type of applicant. RÉSUMÉ L'innovation joue un rôle de premier plan dans la compétitivité économique régionale et l'expansion de la productivité. Une des principales caractéristiques de l’économie de l'Inde est le regroupement géographique de l'activité économique et de l'innovation. Dans la présente communication, j'examine la mesure dans laquelle la distribution spatiale de l'activité économique détermine l'innovation; j'analyse des demandes de brevet déposées entre 1999 et 2007 dans différents districts de l'Inde, et mes conclusions économétriques permettent d'affirmer que les dépenses en R&D, la diversité industrielle et la distribution des dotations en ressources humaines peuvent avoir un effet considérable sur la production de l'innovation. Les évaluations sont robustes sur le plan de la subjectivité des variables omises, des différentes spécifications de modèles, et du type de requérant. EXTRACTO La innovación es crucial para la competitividad económica regional y el crecimiento de la productividad. Una característica sobresaliente de la economía india es la agrupación geográfica de la actividad económica y la innovación. En este trabajo, estudio hasta qué punto la distribución espacial de la actividad económica impulsa la innovación. Analizo las solicitudes de patentes entre 1999 y 2007 a través de distritos de la India, y mis descubrimiento econométricos sugieren que el gasto en I + D, la diversidad industrial y la distribución de las dotaciones de capital humano pueden tener un efecto importante sobre la generación de innovación. Las estimaciones son firmes frente al sesgo por variables omitidas, diferentes especificaciones de modelos y el tipo de solicitante.

Suggested Citation

  • Megha Mukim, 2012. "Does Agglomeration Boost Innovation? An Econometric Evaluation," Spatial Economic Analysis, Taylor & Francis Journals, vol. 7(3), pages 357-380, September.
    • Handle: RePEc:taf:specan:v:7:y:2012:i:3:p:357-380
    DOI: 10.1080/17421772.2012.694142
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    5. Li Fang, 2018. "The Dual Effects of Information Technology Clusters: Learning and Selection," Economic Development Quarterly, , vol. 32(3), pages 195-209, August.

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