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R&D, Spillovers, Innovation Systems and the Genesis of Regional Growth in Europe

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Author Info
Andres Rodriguez-Pose ()
Riccardo Crescenzi ()

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Abstract

The paper aims at understanding the balance between “endogenous†factors and “external†knowledge flows in the process of innovation and growth of EU regions. Research on the impact of innovation on regional economic performance in Europe has fundamentally followed three approaches: a) the analysis of the link between investment in R&D, patents, and economic growth; b) the examination of geographical diffusion of regional knowledge spillovers; and c) the study of the existence and efficiency of regional innovation systems. These complementary approaches have, however, rarely been combined. Important operational and methodological barriers have thwarted any potential cross-fertilization. In this paper, we try to fill this gap in the literature by combining in one model R&D, spillovers, and innovation systems approaches. A multiple regression analysis approach is conducted for all regions of the EU-25, including measures of R&D investment, proxies for socio-economic structure, for each region and in neighbouring regions. The empirical results highlight how the three above-mentioned factors interact with one another uncovering the importance not only of “endogenousâ€innovative efforts but also of local socio-economic conditions for the genesis and assimilation of innovation and its transformation it into economic growth across European regions. In addition, the quantitative analysis shows the importance of proximity for the transmission of economically productive knowledge.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa06p371.

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Date of creation: Aug 2006
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Handle: RePEc:wiw:wiwrsa:ersa06p371

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This paper has been announced in the following NEP Reports: This item is featured on the following reading lists:
  1. Socio-Economics of Innovation
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  1. Jan Fagerberg, Bart Verspagen, Marjolein Caniëls, 1997. "Technology, Growth and Unemployment across European Regions," Regional Studies, Taylor and Francis Journals, vol. 31(5), pages 457-466, July. [Downloadable!] (restricted)
  2. Lydia Greunz, 2003. "Geographically and technologically mediated knowledge spillovers between European regions," The Annals of Regional Science, Springer, vol. 37(4), pages 657-680, December. [Downloadable!] (restricted)
  3. Beñat Bilbao-Osorio & Andrés Rodríguez-Pose, 2004. "From R&D to Innovation and Economic Growth in the EU," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 35(4), pages 434-455. [Downloadable!] (restricted)
  4. Bottazzi, Laura & Peri, Giovanni, 2003. "Innovation and spillovers in regions: Evidence from European patent data," European Economic Review, Elsevier, vol. 47(4), pages 687-710, August. [Downloadable!] (restricted)
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  5. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-40, June. [Downloadable!] (restricted)
  6. Anselin, Luc & Varga, Attila & Acs, Zoltan, 1997. "Local Geographic Spillovers between University Research and High Technology Innovations," Journal of Urban Economics, Elsevier, vol. 42(3), pages 422-448, November. [Downloadable!] (restricted)
  7. James D. Adams, 2002. "Comparative localization of academic and industrial spillovers," Journal of Economic Geography, Oxford University Press, vol. 2(3), pages 253-278, July.
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  8. Rosina Moreno & Raffaele Paci & Stefano Usai, 2004. "Spatial spillovers and innovation activity in European regions," ERSA conference papers ersa04p588, European Regional Science Association. [Downloadable!]
  9. Michael Storper & Anthony J. Venables, 2004. "Buzz: face-to-face contact and the urban economy," Journal of Economic Geography, Oxford University Press, vol. 4(4), pages 351-370, August. [Downloadable!] (restricted)
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  10. Acs, Zoltan J & Audretsch, David B & Feldman, Maryann P, 1992. "Real Effects of Academic Research: Comment," American Economic Review, American Economic Association, vol. 82(1), pages 363-67, March. [Downloadable!] (restricted)
  11. Attila Varga, 1998. "Local academic knowledge spillovers and the concentration of economic activity," ERSA conference papers ersa98p493, European Regional Science Association. [Downloadable!]
  12. Storper, Michael, 1995. "Regional technology coalitions an essential dimension of national technology policy," Research Policy, Elsevier, vol. 24(6), pages 895-911, November. [Downloadable!] (restricted)
  13. Furman, Jeffrey L. & Porter, Michael E. & Stern, Scott, 2002. "The determinants of national innovative capacity," Research Policy, Elsevier, vol. 31(6), pages 899-933, August. [Downloadable!] (restricted)
  14. James D. Adams & Adam B. Jaffe, 1996. "Bounding the Effects of R&D: An Investigation Using Matched Establishment-Firm Data," NBER Working Papers 5544, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  15. Fagerberg, Jan, 1994. "Technology and International Differences in Growth Rates," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1147-75, September. [Downloadable!] (restricted)
  16. John Cantwell Simona Iammarino, 1998. "MNCs, Technological Innovation and Regional Systems in the EU: Some Evidence in the Italian Case," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 5(3), pages 383-408, November. [Downloadable!] (restricted)
  17. Paul Cheshire, 2000. "Endogenous Processes in European Regional Growth: Convergence and Policy," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 31(4), pages 455-479. [Downloadable!] (restricted)
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