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Measuring the efficiency of regional innovation systems: an empirical assessment

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  • Fritsch, Michael
  • Slavtchev, Viktor

Abstract

We measure the efficiency of regional innovation systems (RIS) in Germany by means of a knowledge production function. This function relates private sector Research and Development (R&D) in a region to the number of inventions that have been registered by residents of that region. Two approaches are followed. First, it is assumed that differences in the productivity of private sector R&D between regions affect the slope of the KPF, which represents the marginal productivity of R&D input. The second approach assesses regional differences within the framework of a stochastic frontier knowledge production function. This approach mainly reveals differences with regard to the intercept of the knowledge production function and, therefore, with regard to the average productivity. We compare the results of both approaches and discuss a number of critical issues such as the properties of the distribution of efficiencies, the appropriate size of RIS, and how to deal with the issue of spatial autocorrelation. --

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Bibliographic Info

Paper provided by TU Bergakademie Freiberg, Faculty of Economics and Business Administration in its series Freiberg Working Papers with number 2006,08.

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Date of creation: 2006
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Handle: RePEc:zbw:tufwps:200608

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Related research

Keywords: Knowledge; innovation; spillovers; patents; regional analysis;

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References

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  1. repec:fth:harver:1473 is not listed on IDEAS
  2. Zvi Griliches, 1979. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 92-116, Spring.
  3. Michael Fritsch, 2000. "Interregional Differences in R&D Activities—An Empirical Investigation," European Planning Studies, Taylor & Francis Journals, vol. 8(4), pages 409-427, August.
  4. Manfred M. Fischer & Attila Varga, 2003. "Spatial knowledge spillovers and university research: Evidence from Austria," The Annals of Regional Science, Springer, vol. 37(2), pages 303-322, 05.
  5. Zvi Griliches, 1991. "Patent Statistics as Economic Indicators: A Survey," NBER Working Papers 3301, National Bureau of Economic Research, Inc.
  6. Michael Fritsch & Viktor Slavtchev, 2005. "The Role of Regional Knowledge for Innovation," ERSA conference papers ersa05p623, European Regional Science Association.
  7. Anselin, Luc, 1990. "Some robust approaches to testing and estimation in spatial econometrics," Regional Science and Urban Economics, Elsevier, vol. 20(2), pages 141-163, September.
  8. Deyle, Hanno-G. & Grupp, Hariolf, 2005. "Commuters and the regional assignment of innovative activities: A methodological patent study of German districts," Research Policy, Elsevier, vol. 34(2), pages 221-234, March.
  9. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
  10. Acs, Zoltan J. & Anselin, Luc & Varga, Attila, 2002. "Patents and innovation counts as measures of regional production of new knowledge," Research Policy, Elsevier, vol. 31(7), pages 1069-1085, September.
  11. Ronde, Patrick & Hussler, Caroline, 2005. "Innovation in regions: What does really matter?," Research Policy, Elsevier, vol. 34(8), pages 1150-1172, October.
  12. Rosina Moreno & Raffaele Paci & Stefano Usai, 2005. "Geographical and sectoral clusters of innovation in Europe," The Annals of Regional Science, Springer, vol. 39(4), pages 715-739, December.
  13. Frans W.M. Boekema & Marius T.H. Meeus & Leon A.G. Oerlemans, 2001. "articles: Firm clustering and innovation: Determinants and effects," Papers in Regional Science, Springer, vol. 80(3), pages 337-356.
  14. Michael Fritsch, 2004. "Cooperation and the efficiency of regional R&D activities," Cambridge Journal of Economics, Oxford University Press, vol. 28(6), pages 829-846, November.
  15. Baptista, Rui & Swann, Peter, 1998. "Do firms in clusters innovate more?," Research Policy, Elsevier, vol. 27(5), pages 525-540, September.
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Cited by:
  1. Leydesdorff, Loet & Fritsch, Michael, 2006. "Measuring the knowledge base of regional innovation systems in Germany in terms of a Triple Helix dynamics," Research Policy, Elsevier, vol. 35(10), pages 1538-1553, December.
  2. Tom Broekel & Thomas Brenner, 2009. "Regional Factors and Innovativeness - An Empirical Analysis of Four German Industries," Papers in Evolutionary Economic Geography (PEEG) 0917, Utrecht University, Section of Economic Geography, revised Oct 2009.
  3. Michael Fritsch & Viktor Slavtchev, 2008. "How Does Industry Specialization Affect the Efficiency of Regional Innovation Systems?," Jena Economic Research Papers 2008-058, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  4. Alexandra Schröter, 2008. "Perspektiven der Innovationspolitik in den neuen Bundesländern," ifo Dresden berichtet, Ifo Institute for Economic Research at the University of Munich, vol. 15(02), pages 40-52, 04.
  5. Michael Fritsch & Viktor Slavtchev, 2007. "What determines the efficiency of regional innovation systems?," Jena Economic Research Papers 2007-006, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  6. Michael Fritsch, 2007. "The Geography and the Effect of Creative People in Germany," Jena Economic Research Papers 2007-001, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  7. Tom Broekel & Thomas Brenner, 2007. "Measuring Regional Innovativeness - A Methodological Discussion and an Application to One German Industry," Jena Economic Research Papers 2007-065, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.

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