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From Average to the Frontier: A Nonparametric Performance Approach for Analyzing Externalities and Regions’ Innovativeness

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  • Tom Broekel

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Abstract

Although a rich literature has emerged analyzing the impact of localization, urbanization, and Jacobs externalities on regional innovativeness, the findings are still contradictory. Traditional studies differ mainly in the employed data but rely on similar empirical approaches. This paper argues in favor of using in this context production frontier approaches instead of the commonly employed production function approaches. In addition, a nonparametric frontier approach is used to empirically examine the influence of the externalities on regions’ innovativeness. For four different industries positive effect of localization and urbanization externalities are found. In contrast, with the exception of the transport equipment industry, Jacobs externalities seem to be of minor importance.

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File URL: http://econ.geo.uu.nl/peeg/peeg0804b.pdf
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Bibliographic Info

Paper provided by Utrecht University, Section of Economic Geography in its series Papers in Evolutionary Economic Geography (PEEG) with number 0804.

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Length: 32 pages
Date of creation: Mar 2008
Date of revision: May 2008
Handle: RePEc:egu:wpaper:0804

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Related research

Keywords: regional innovation performance; nonparametric frontier analysis; German electrics; electronics industry;

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Cited by:
  1. Tom Broekel & Thomas Brenner, 2009. "Regional Factors and Innovativeness - An Empirical Analysis of Four German Industries," Papers in Evolutionary Economic Geography (PEEG) 0917, Utrecht University, Section of Economic Geography, revised Oct 2009.
  2. De Witte, Kristof & Mika, Kortelainen, 2009. "Blaming the exogenous environment? Conditional efficiency estimation with continuous and discrete exogenous variables," MPRA Paper 14034, University Library of Munich, Germany.

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