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More publicly funded research, more knowledge spillovers, more economic growth. An empirical analysis for German regions

Author

Listed:
  • Jonathan Eberle

    (Department of Geography, Philipps University Marburg)

  • Thomas Brenner

    (Department of Geography, Philipps University Marburg)

  • Timo Mitze

    (Department of Business and Economics, University of Southern Denmark)

Abstract

This paper deals with the effects of publicly funded research on regional technological progress and economic growth. We adopt a system approach and investigate the effects on all regional input factors and output by means of a flexible spatial panel VAR SpPVAR model. This allows us to deal with the evolutionary nature of regional dynamic processes. We further extend the existing empirical literature on the role of publicly funded research for economic development by differentiating between public research activities conducted by universities, technical colleges, Fachhochschulen, and non-university research institutes. The empirical results show that an increase in ,public, third-party funds to technical colleges leads to positive effects on regional investment and employment rates as well as the human capital stock. We also find a positive link between the publication rate of non-university research institutes and regional investment and employment rates. Furthermore, an overall increase in combined public third party funding of universities and technical colleges affects regional patent activities, the employment rate and output positively.

Suggested Citation

  • Jonathan Eberle & Thomas Brenner & Timo Mitze, 2018. "More publicly funded research, more knowledge spillovers, more economic growth. An empirical analysis for German regions," Working Papers on Innovation and Space 2018-01, Philipps University Marburg, Department of Geography.
    • Handle: RePEc:pum:wpaper:2018-01
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    More about this item

    Keywords

    regional economic growth; publicly funded research; production function; factor inputs; multiple equation SpPVAR models; impulse response functions;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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