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Do clusters generate greater innovation and growth? An analysis of European regions

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  • Andrés Rodríguez-Pose

    (IMDEA Social Sciences Institute)

  • Fabrice Comptour

    (College of Europe, Bruges)

Abstract

The analysis of clusters has attracted considerable interest over the last few decades. The articulation of clusters into complex networks and systems of innovation – generally known as regional innovation systems – has, in particular, been associated with the delivery of greater innovation and growth. However, despite the growing economic and policy relevance of clusters, little systematic research has been conducted into their association with other factors promoting innovation and economic growth. This paper addresses this issue by looking at the relationship between innovation and economic growth in 152 regions of Europe during the period between 1995 and 2006. Using an econometric model with a static and a dynamic dimension, the results of the analysis highlight that: a) regional growth through innovation in Europe is fundamentally connected to the presence of an adequate socioeconomic environment and, in particular, to the existence of a well-trained and educated pool of workers; b) the presence of clusters matters for regional growth, but only in combination with a good ‘social filter’, and this association wanes in time; c) more traditional R&D variables have a weak initial connection to economic development, but this connection increases over time and, is, once again, contingent on the existence of adequate socioeconomic conditions.

Suggested Citation

  • Andrés Rodríguez-Pose & Fabrice Comptour, 2010. "Do clusters generate greater innovation and growth? An analysis of European regions," Working Papers 2010-15, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
  • Handle: RePEc:imd:wpaper:wp2010-15
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    Cited by:

    1. Daniela-Luminita Constantin & Carmen Beatrice Pauna & Mariana Dragusin & Zizi Goschin & Constanta Bodea, 2011. "The Question of Clusters in Lagging Regions: Do They Really Make the Difference? A Case Study in Romania," Environment and Planning C, , vol. 29(5), pages 889-910, October.
    2. Dorota Ciolek, 2011. "Metody identyfikacji efektow zewnetrznych funkcjonowania klastrów przemyslowych," Working Papers of Economics of European Integration Division 1103, The Univeristy of Gdansk, Faculty of Economics, Economics of European Integration Division.
    3. Alexandra Tsvetkova & Jean-Claude Thill & Deborah Strumsky, 2014. "Metropolitan innovation, firm size, and business survival in a high-tech industry," Small Business Economics, Springer, vol. 43(3), pages 661-676, October.
    4. Rupert Waters & Helen Lawton Smith, 2012. "Clusters, human capital and economic development in Oxfordshire and Cambridgeshire," Working Papers 2, Birkbeck Centre for Innovation Management Research, revised Feb 2012.

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    More about this item

    Keywords

    clusters; regional innovation systems; innovation; regional economic growth; socioeconomic conditions; regions; European Union;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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