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Adoption of Technology and Regional Convergence in Europe

Author

Listed:
  • Alexiadis Stilianos

    (Department of Economics, University of Piraeus, Greece)

  • Korres George

    (Department of Geography, University of the Aegean, University Hill, Mitilene, Greece)

Abstract

This paper examines the pattern of convergence in labour productivity across regions due to their ability to adopt technology. Whether regions exhibit a pattern of convergence depends on the degree to which infrastructure conditions are appropriate for the adoption of technological improvements. The ability of a region to adopt or create technology is reflected in the percentage of its labour force employed in technologically dynamic sectors or, more generally, in the resources devoted to science and technology. A high percentage of labour employed in technologically advanced sectors leads a region to a pattern of convergence. This hypothesis is tested using data for the NUTS-2 regions of the EU-27 during the time period 1995-2006. The results suggest that adoption of technology has a significant and positive effect on regional convergence in Europe. The analysis is also shown to have important implications for the direction of regional policy in Europe. To be more specific, regional policies, in order to enhance regional growth and convergence, should encourage employment in advanced technological sectors.

Suggested Citation

  • Alexiadis Stilianos & Korres George, 2010. "Adoption of Technology and Regional Convergence in Europe," European Spatial Research and Policy, Sciendo, vol. 17(2), pages 95-105, October.
    • Handle: RePEc:vrs:eusprp:v:17:y:2010:i:2:p:95-105:n:6
    DOI: 10.2478/s10105-010-0012-6
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    References listed on IDEAS

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    Cited by:

    1. Dimitrios A Giannias & Eleni Sfakianaki, 2013. "Regional and environmental classifications of the 27 EU countries," Journal of Developing Areas, Tennessee State University, College of Business, vol. 47(2), pages 139-157, July-Dece.
    2. repec:hrs:journl::v:2:y:2010:i:2:p:55-70 is not listed on IDEAS
    3. Alexiadis Stilianos & Christos Ap. LADIAS & Polo Antoneta, 2010. "Converging And Diverging Regions In The Eu: Implications For Regional Policy," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 55-70, December.

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