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What determines the efficiency of regional innovation systems?

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Abstract

We assess the efficiency of regional innovation systems (RIS) in Germany by means of a knowledge production function. This function relates private sector research and development (R&D) activity in a region to the number of inventions that have been registered by residents of that region. Different measures and estimation approaches lead to rather similar assessments. We find that both spillovers within the private sector as well as from universities and other public research institutions have a positive effect on the efficiency of private sector R&D in the respective region. It is not the mere presence and size of public research institutions, but rather the intensity of interactions between private and public sector R&D that leads to high RIS efficiency. We find that relationship between the diversity of a regions’ industry structure and the efficiency of its innovation system is inversely u-shaped. Regions dominated by large establishments tend to be less efficient than regions with a lower average establishment size.

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Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2007-006.

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Date of creation: 20 Apr 2007
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Handle: RePEc:jrp:jrpwrp:2007-006

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Keywords: Knowledge; innovation; technical efficiency; spillovers; patents; regional analysis;

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Citations

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Cited by:
  1. Fritsch, Michael & Slavtchev, Viktor, 2006. "Universities and innovation in space," Freiberg Working Papers 2006,15, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
  2. Michael Fritsch, 2008. "How does new business formation affect regional development? Introduction to the special issue," Small Business Economics, Springer, vol. 30(1), pages 1-14, January.
  3. Chen Kaihua & Kou Mingting, 2014. "Staged efficiency and its determinants of regional innovation systems: a two-step analytical procedure," The Annals of Regional Science, Springer, vol. 52(2), pages 627-657, March.
  4. Alexandra Schröter, 2008. "Perspektiven der Innovationspolitik in den neuen Bundesländern," ifo Dresden berichtet, Ifo Institute for Economic Research at the University of Munich, vol. 15(02), pages 40-52, 04.
  5. Guan, Jiancheng & Chen, Kaihua, 2012. "Modeling the relative efficiency of national innovation systems," Research Policy, Elsevier, vol. 41(1), pages 102-115.
  6. Tom Broekel & Thomas Brenner, 2007. "Measuring Regional Innovativeness - A Methodological Discussion and an Application to One German Industry," Jena Economic Research Papers 2007-065, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.

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