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The Firms behind the Regions: Analysis of Regional Innovation Performance in Portugal by External Logistic Biplots

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Author Info

  • Teresa de Noronha

    (Research Centre for Spatial and Organizational Dynamics, University of the Algarve, Faro, Portugal; Cities Centre, University of Toronto, Canada)

  • Purificación Vicente Galindo

    (University of Salamanca, Spain)

  • Peter Nijkamp

    (VU University Amsterdam)

  • Eric de Noronha Vaz

    (Ryerson University, Toronto, Canada)

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    Abstract

    The strategic choices regarding innovation and R&D policy in Portugal have, over the last two decades, produced various positive benefits, in which particularly the regions of Lisbon and Algarve have taken the lead. These are the only parts of the country that converge towards the European average growth rate. The other Lisbon and Algarve have taken the lead, and are the only ones in the country to converge towards the European average growth rate. Other Portuguese regions – despite significant national growth rates in the 1990s and a successful attempt to cope with the EMU – are lagging behind the EU average with respect to gross production, investment and employment generation. Meanwhile, one of the greatest public policy efforts was to diffuse much of the European funds across the entrepreneurial sector. This paper aims to evaluate the firms’ contribution to national and regional growth, their obstacles and impacts, and to explain the present performance of Portuguese firms located throughout the country, and to explore those innovation determinants that have a region-specific connotation. In our paper, innovation is used as a major contributor to the policy evaluation process referred to above. To provide a thorough investigation, our analysis defines, on a regional basis, a set of firms’ behavioural patterns regarding innovation. In our modelling, we employ a new methodology, viz. the External Logistic Biplot method, which is applied to an extensive sample of innovative institutions in Portugal. Variables such as ‘Promoting knowledge’, ‘Management skills’, ‘Promoting R&D’, ‘Knowledge transfer’, ‘Promoting partnership & cooperation’, and ‘Orientation of public measures’ have been identified as crucial determinants in earlier studies and are now used to describe regional institutional profiles.

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    Bibliographic Info

    Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 13-133/VIII.

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    Date of creation: 05 Sep 2013
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    Handle: RePEc:dgr:uvatin:20130133

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    Web page: http://www.tinbergen.nl

    Related research

    Keywords: Regional Asymmetries; Innovation; Firms’ Performance; Regional Innovation Systems; Principal Coordinates Analysis; External Logistic Biplot; Voronoi Diagram; Dissimilarity Matrix;

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    References

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    1. Acs, Zoltán J & Audretsch, David B & Braunerhjelm, Pontus & Carlsson, Bo, 2004. "The Missing Link: The Knowledge Filter and Entrepreneurship in Endogenous Growth," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4783, C.E.P.R. Discussion Papers.
    2. Christos Kalantaridis, 1999. "Processes of innovation among manufacturing SMEs: the experience of Bedfordshire," Entrepreneurship & Regional Development, Taylor & Francis Journals, Taylor & Francis Journals, vol. 11(1), pages 57-78, January.
    3. Roger Stough & Peter Nijkamp, 2009. "Knowledge spillovers, entrepreneurship and economic development," The Annals of Regional Science, Springer, Springer, vol. 43(4), pages 835-838, December.
    4. Storper, Michael & Harrison, Bennett, 1991. "Flexibility, hierarchy and regional development: The changing structure of industrial production systems and their forms of governance in the 1990s," Research Policy, Elsevier, Elsevier, vol. 20(5), pages 407-422, October.
    5. Kaiser, Ulrich, 2002. "Measuring knowledge spillovers in manufacturing and services: an empirical assessment of alternative approaches," Research Policy, Elsevier, Elsevier, vol. 31(1), pages 125-144, January.
    6. Jan Fagerberg, 2003. "Schumpeter and the revival of evolutionary economics: an appraisal of the literature," Journal of Evolutionary Economics, Springer, Springer, vol. 13(2), pages 125-159, 04.
    7. Mark S. Freel, 1998. "Evolution, innovation and learning: evidence from case studies," Entrepreneurship & Regional Development, Taylor & Francis Journals, Taylor & Francis Journals, vol. 10(2), pages 137-149, January.
    8. Fagerberg, Jan, 1987. "A technology gap approach to why growth rates differ," Research Policy, Elsevier, Elsevier, vol. 16(2-4), pages 87-99, August.
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