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The effects of knowledge and innovation on regional growth: Nonparametric evidence

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  • Marcos Sanso-Navarro
  • Maria Vera-Cabello

Abstract

This paper deals with the relationship between knowledge, innovation and regional growth. The study is carried out through the application of nonparametric estimation methods to European data at NUTS2 level. We provide evidence that the share of innovative firms plays a more relevant role in explaining regional growth than R&D expenditures. Further, inward FDI turns out to be a robust growth determinant. Our results also suggest that the effects induced by these variables are of a heterogeneous nature. As a byproduct of the analysis, we show that the estimation results from a local-linear kernel regression can be used for the identification of spatial patterns. In this respect, we find a cluster of innovation-driven labour productivity growth in Germany.

Suggested Citation

  • Marcos Sanso-Navarro & Maria Vera-Cabello, 2015. "The effects of knowledge and innovation on regional growth: Nonparametric evidence," ERSA conference papers ersa15p949, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa15p949
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    References listed on IDEAS

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    More about this item

    Keywords

    Regional growth; knowledge; innovation; nonparametric methods; nonlinearities;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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