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Industrial structure and innovation - Evidence from European regions

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  • Lydia Greunz

Abstract

Whether the composition of industrial activity influences innovation is the key question of this paper. The analysis is based on a model that integrates different kinds of diversity measures aiming at capturing Jacobs externalities, a production specialisation measure aiming at capturing Marshall-Arrow-Romer (MAR) externalities and regions as well as sector specific variables. Tested with an extended sample of 153 European regions and 16 manufacturing sectors, the estimates suggest that both kinds of externalities significantly influence innovation, although the influence of Jacobs externalities is more important in the context of "high density" regions as well as for high tech sectors.

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Bibliographic Info

Paper provided by ULB -- Universite Libre de Bruxelles in its series ULB Institutional Repository with number 2013/169718.

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Date of creation: Dec 2004
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Publication status: Published in: Journal of evolutionary economics (2004) v.14 n° 5,p.563-592
Handle: RePEc:ulb:ulbeco:2013/169718

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Related research

Keywords: Diversity; Externalities; Innovation; Knowledge spillovers; Specialisation;

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Cited by:
  1. Martin Woerter, 2009. "Industry diversity and its impact on the innovation performance of firms," Journal of Evolutionary Economics, Springer, Springer, vol. 19(5), pages 675-700, October.
  2. Fritsch, Michael & Slavtchev, Viktor, 2006. "Universities and innovation in space," Freiberg Working Papers 2006,15, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
  3. Arias-Aranda, Daniel & Romerosa-Martínez, M. Mercedes, 2010. "Innovation in the functional foods industry in a peripheral region of the European Union: Andalusia (Spain)," Food Policy, Elsevier, Elsevier, vol. 35(3), pages 240-246, June.
  4. Michele Cincera, 2005. "Firms' productivity growth and R&D spillovers: An analysis of alternative technological proximity measures," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(8), pages 657-682.
  5. 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, Purdue University, College of Agriculture, Department of Agricultural Economics 11-1, Purdue University, College of Agriculture, Department of Agricultural Economics.
  6. Michael Fritsch & Viktor Slavtchev, 2010. "How does industry specialization affect the efficiency of regional innovation systems?," The Annals of Regional Science, Springer, Springer, vol. 45(1), pages 87-108, August.
  7. Christ, Julian P., 2009. "The geography and co-location of European technology-specific co-inventorship networks," Violette Reihe Arbeitspapiere 31/2010, Promotionsschwerpunkt "Globalisierung und Beschaeftigung".
  8. Raquel Ortega-Argilés & Rosina Moreno, 2009. "Evidence On The Role Of Ownership Structure On Firms’ Innovative Performance," IREA Working Papers, University of Barcelona, Research Institute of Applied Economics 200909, University of Barcelona, Research Institute of Applied Economics, revised Apr 2009.
  9. Carbonara , Nunzia & Tavassoli, Sam, 2013. "The Role of Knowledge Heterogeneity on the Innovative Capability of Industrial Districts," CIRCLE Electronic Working Papers, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy 2013/35, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  10. Kutsenko, E., 2012. "Path Dependence in Spatial Distribution of Economic Activity: Bad News for Empiric Research of Agglomeration Effects," Journal of the New Economic Association, New Economic Association, New Economic Association, vol. 14(2), pages 10-26.
  11. Baltzopoulos, Apostolos, 2009. "Agglomeration Externalities and Entrepreneurship - micro-level evidence from Sweden," Working Paper Series in Economics and Institutions of Innovation, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies 190, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  12. Matthias Bürger, 2011. "Dynamics of Collaborative Invention Tracking Growth of Cooperative and Total Patents in the Region," Jena Economic Research Papers, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics 2011-045, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  13. Nunzia Carbonara & Ilaria Giannoccaro, 2011. "Geographical Cluster Heterogeneity and Competitive Advantage: evidence from Italy," ERSA conference papers ersa10p1414, European Regional Science Association.
  14. Michael Fritsch & Viktor Slavtchev, 2007. "What determines the efficiency of regional innovation systems?," Jena Economic Research Papers, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics 2007-006, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.

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