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How Does Industry Specialization Affect the Efficiency of Regional Innovation Systems?

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  • Michael Fritsch

    ()
    (Friedrich-Schiller-University Jena, Faculty of Economics and Business Administration; Max Planck Institute of Economics, Jena, Germany)

  • Viktor Slavtchev

    ()
    (Max Planck Institute of Economics, Jena, Germany)

Abstract

This study analyzes the relationship between the specialization of a region in certain industries and the efficiency of the region in generating new knowledge. The efficiency measure is constructed by relating regional R&D input and output. An inversely u-shaped relationship is found between regional specialization and R&D efficiency, indicating the presence of externalities of both Marshall and Jacobs’ type. Further factors influencing efficiency are spillovers within the private sector as well as from public research institutions. The impact of both the specialization and the additional factors is, however, different for regions at different efficiency levels.

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Bibliographic Info

Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2008-058.

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Date of creation: 17 Jul 2008
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Handle: RePEc:jrp:jrpwrp:2008-058

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Keywords: Efficiency; innovation; spillovers; patents; regional analysis.;

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Citations

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Cited by:
  1. Dachs, Bernhard & Ebersberger, Bernd & Kinkel, Steffen & Som, Oliver, 2014. "The effects of production offshoring on R&D and innovation in the home country," Discussion Papers "Innovation Systems and Policy Analysis" 39, Fraunhofer Institute for Systems and Innovation Research (ISI).
  2. Christoph Hornych & Michael Schwartz, 2009. "Industry Concentration and Regional Innovative Performance – Empirical Evidence for Eastern Germany," IWH Discussion Papers 8, Halle Institute for Economic Research.
  3. Schimke, Antje & Teichert, Nina & Ott, Ingrid, 2012. "Impact of local knowledge endowment on employment growth in nanotechnology," Working Paper Series in Economics 38, Karlsruhe Institute of Technology (KIT), Department of Economics and Business Engineering.
  4. Helen McGuirk & Declan Jordan, 2011. "Local Labour Market Diversity and Business Innovation: Evidence from Irish Manufacturing Businesses," European Planning Studies, Taylor & Francis Journals, vol. 20(12), pages 1945-1960, June.
  5. Michael Fritsch & Holger Graf, 2010. "How General Conditions Affect Regional Innovation Systems - The Case of the Two Germanys," Jena Economic Research Papers 2010-054, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.

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