Industry Specialization, Diversity and the Efficiency of Regional Innovation Systems
AbstractInnovation processes are characterized by a pronounced division of labor between actors. Two types of externality may arise from such interactions. On the one hand, a close location of actors affiliated to the same industry may stimulate innovation (MAR externalities). On the other hand, new ideas may be born by the exchange of heterogeneous and complementary knowledge between actors, which belong to different industries (Jacobs' externalities). We test the impact of both MAR as well as Jacobs' externalities on innovative performance at the regional level. The results suggest an inverted u-shaped relationship between regional specialization in certain industries and innovative performance. Further key determinants of the regional innovative performance are private sector R&D and university-industry collaboration.
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Bibliographic InfoPaper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2007-018.
Date of creation: 05 Jun 2007
Date of revision:
Innovation; technical efficiency; patents; agglomeration concentration; specialization; diversity; regional analysis.;
Find related papers by JEL classification:
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-06-11 (All new papers)
- NEP-EFF-2007-06-11 (Efficiency & Productivity)
- NEP-GEO-2007-06-11 (Economic Geography)
- NEP-INO-2007-06-11 (Innovation)
- NEP-IPR-2007-06-11 (Intellectual Property Rights)
- NEP-KNM-2007-06-11 (Knowledge Management & Knowledge Economy)
- NEP-TID-2007-06-11 (Technology & Industrial Dynamics)
- NEP-URE-2007-06-11 (Urban & Real Estate Economics)
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- Valerien O. Pede & Raymond J.G.M. Florax & Henri L.F. de Groot, 2011. "Technological Leadership and Sectoral Employment Growth:A Spatial Econometric Analysis for U.S. Counties," Working Papers 11-1, Purdue University, College of Agriculture, Department of Agricultural Economics.
- Michael Fritsch & Viktor Slavtchev, 2007. "What determines the efficiency of regional innovation systems?," Jena Economic Research Papers 2007-006, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
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