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Productivity Gaps Among European Regions

In: Technology Transfer in a Global Economy

Author

Listed:
  • Claudio Cozza

    (FORMIT Fondazione per la Ricerca sulla Migrazione e Integrazione delle Tecnologie)

  • Raquel Ortega-Argilés

    (University of Groningen)

  • Mariacristina Piva

    (Università Cattolica del Sacro Cuore)

  • Rui Baptista

    (DEG, Instituto Superior Técnico)

Abstract

How is the R&D-productivity link affected by the environment where firms locate? Are companies located with their registered offices in more R&D favorable environments better able to translate their R&D knowledge into productivity gains? Our paper tries to answer these questions analyzing - in the European context - if R&D performing companies cluster themselves in “higher-order R&D regions”, as the Economic Geography theories postulate, inducing a polarisation in terms of labour productivity in comparison with firms located in “lower-order R&D regions”. The proposed microeconometric estimates are based on a unique longitudinal database of publicly-traded companies belonging to manufacturing and service sectors. The final unbalanced sample comprises 626 European companies for a total of 3,431observations, covering the period 1990-2008. Results show that European “higher-order R&D regions” not only invest more in R&D, but also achieve more in terms of productivity gains from their own research activities. Results also show that in the case of “lower-order R&D regions”, physical capital stock is still playing a dominant role.

Suggested Citation

  • Claudio Cozza & Raquel Ortega-Argilés & Mariacristina Piva & Rui Baptista, 2012. "Productivity Gaps Among European Regions," International Studies in Entrepreneurship, in: David B. Audretsch & Erik E. Lehmann & Albert N. Link & Alexander Starnecker (ed.), Technology Transfer in a Global Economy, edition 127, chapter 0, pages 205-232, Springer.
    • Handle: RePEc:spr:inschp:978-1-4614-6102-9_12
    DOI: 10.1007/978-1-4614-6102-9_12
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    Cited by:

    1. Raquel Ortega-Argilés, 2012. "The Transatlantic Productivity Gap: A Survey Of The Main Causes," Journal of Economic Surveys, Wiley Blackwell, vol. 26(3), pages 395-419, July.

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