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Knowledge, Innovation and Productivity Gains across European Regions

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  • Roberta Capello
  • Camilla Lenzi

Abstract

C apello R. and L enzi C. Knowledge, innovation and productivity gains across European regions, Regional Studies . This paper studies the relationship between knowledge, innovation and productivity in European regions, looking for the sources of spatial heterogeneity across regions in the type of knowledge needed for innovation and in the propensity to innovate, which mostly depend upon specific and systemic context conditions. The conceptual framework of analysis is based on the strong belief that different modes of innovation characterize regions, according to the presence/absence of some context conditions that allow for the creation and/or adoption of knowledge and innovation. Given the differences in knowledge and innovation intensity that characterize each mode/pattern of innovation, expectations are formulated on the achievement of productivity gains in regions characterized by different innovation patterns. Empirical evidence supports the conceptual expectations and shows that in regional innovation patterns based on local scientific knowledge-creation processes there are positive returns to scientific knowledge. However, in less knowledge-intensive patterns considerable productivity gains can also be achieved by local actors exploiting non-scientific knowledge and innovative capacity. Importantly, whereas the benefits accruing from knowledge appear rather selective and concentrated in a relatively small number of regions, the benefits generated by innovation seem more pervasive and beneficial, even in regions with a low endowment of scientific knowledge. These results have considerable implications for the current design of European Union innovation policies at the regional level.

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  • Roberta Capello & Camilla Lenzi, 2015. "Knowledge, Innovation and Productivity Gains across European Regions," Regional Studies, Taylor & Francis Journals, vol. 49(11), pages 1788-1804, November.
    • Handle: RePEc:taf:regstd:v:49:y:2015:i:11:p:1788-1804
    DOI: 10.1080/00343404.2014.917167
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    1. Sylvie Charlot & Riccardo Crescenzi & Antonio Musolesi, 2012. "An "extended" knowledge production function approach to the genesis of innovation in the European regions," INRA UMR CESAER Working Papers 2012/7, INRA UMR CESAER, Centre d'’Economie et Sociologie appliquées à l'’Agriculture et aux Espaces Ruraux.
    2. Roberta Capello & Camilla Lenzi, 2013. "Territorial Patterns of Innovation and Economic Growth in European Regions," Growth and Change, Wiley Blackwell, vol. 44(2), pages 195-227, June.
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    Cited by:

    1. Jeevan Jyoti & Hardeep Chahal & Asha Rani, 2017. "Role of Organizational Learning and Innovation in between High-performance HR Practices and Business Performance: A Study of Telecommunication Sector," Vision, , vol. 21(3), pages 259-273, September.
    2. Roberta Capello & Camilla Lenzi, 2016. "Innovation modes and entrepreneurial behavioral characteristics in regional growth," Small Business Economics, Springer, vol. 47(4), pages 875-893, December.
    3. Thomas Schatzer & Matthias Siller & Janette Walde & Gottfried Tappeiner, 2019. "The Impact of Model Choice on Estimates of Regional TFP," International Regional Science Review, , vol. 42(1), pages 98-116, January.
    4. Arkadiusz Kijek & Tomasz Kijek, 2020. "Nonlinear Effects of Human Capital and R&D on TFP: Evidence from European Regions," Sustainability, MDPI, vol. 12(5), pages 1-14, February.
    5. Aronica, Martina & Fazio, Giorgio & Piacentino, Davide, 2022. "A micro-founded approach to regional innovation in Italy," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    6. Lee, Changjun & Shin, Hyunha & Kim, Keungoui & Kogler, Dieter F., 2022. "The effects of regional capacity in knowledge recombination on production efficiency," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    7. Švarc, Jadranka & Lažnjak, Jasminka & Dabić, Marina, 2019. "Regional innovation culture in innovation laggard: A case of Croatia," Technology in Society, Elsevier, vol. 58(C).
    8. Georges Harb & Charbel Bassil, 2023. "TFP in the Manufacturing Sector: Long-Term Dynamics, Country and Regional Comparative Analysis," Economies, MDPI, vol. 11(2), pages 1-22, January.
    9. Natália Barbosa & Ana Paula Faria, 2023. "Science and productivity in European Firms: How do regional innovation modes matter?," GEE Papers 0175, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Jul 2023.
    10. Dominique Lepore & Sabrina Dubbini & Alessandra Micozzi & Francesca Spigarelli, 2022. "Knowledge Sharing Opportunities for Industry 4.0 Firms," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(1), pages 501-520, March.
    11. Mustafa Cem KIRANKABEŞ & Abdullah ERKUL, 2019. "Regional knowledge production in Central and East European countries: R&D factor productivity and changes in performances," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 10, pages 25-44, June.
    12. Antonelli, Cristiano & Crespi, Francesco & Quatraro, Francesco, 2022. "Knowledge complexity and the mechanisms of knowledge generation and exploitation: The European evidence," Research Policy, Elsevier, vol. 51(8).
    13. Nicola Cortinovis & Frank van Oort, 2017. "Between spilling over and boiling down: network-mediated spillovers, absorptive capacity and productivity in European regions," Tinbergen Institute Discussion Papers 17-118/VI, Tinbergen Institute.
    14. Calcagnini, Giorgio & Marin, Giovanni & Perugini, Francesco, 2021. "Labour flexibility, internal migration and productivity in Italian regions," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 308-320.
    15. Yuxuan Ma & Lei Wang & Di Hu & Yaoqing Ge & Junzhu Zuo & Tian Lan, 2023. "Analysis of spatial patterns of technological innovation capability based on patent data in Jiangsu province, China," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-10, December.
    16. Tomasz Kijek & Anna Matras-Bolibok, 2019. "Spatial Distribution of Total Factor Productivity (TFP) in the EU Regional Scope," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 388-397.

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