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Bayesian Analysis of Knowledge Spillovers in European Regions

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  • Olivier Parent
  • Stéphane Riou

Abstract

This paper estimates the effects of knowledge spillovers on patent growth rates across 335 European regions over the 1989-1999 period. We propose a dynamic model based on an innovation production function. A Bayesian approach is used to take into account area-specific innovation and spatial spillovers. The estimation of the model proceeds via Markov Chain Monte Carlo simulation. The results show significant positive and negative spatial effects on innovative activity. The model allows for a rich spatial specification, which we illustrate by incorporating transport proximity measured by transportation time between regions to augment the typical spatial proximity measure of connectivity between regions. Doing this produces more pronounced spatial spillovers that exhibit a more polarized spatial pattern than a model relying on spatial proximity alone. Copyright Blackwell Publishers, 2005

Suggested Citation

  • Olivier Parent & Stéphane Riou, 2005. "Bayesian Analysis of Knowledge Spillovers in European Regions," Journal of Regional Science, Wiley Blackwell, vol. 45(4), pages 747-775.
  • Handle: RePEc:bla:jregsc:v:45:y:2005:i:4:p:747-775
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    References listed on IDEAS

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    1. Brülhart, Marius, 1996. "Regional Integration, Scale Economies and Industry Location in the European Union," CEPR Discussion Papers 1435, C.E.P.R. Discussion Papers.
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    Cited by:

    1. Feldman, Maryann P. & Kogler, Dieter F., 2010. "Stylized Facts in the Geography of Innovation," Handbook of the Economics of Innovation, Elsevier.
    2. Jesús Mur & Fernando López & Ana Angulo, 2009. "Testing the hypothesis of stability in spatial econometric models," Papers in Regional Science, Wiley Blackwell, vol. 88(2), pages 409-444, June.
    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, vol. 35(3), pages 240-246, June.
    4. Martin-Barroso, David & Nuñez Serrano, Juan Andres & Velazquez, Francisco J., 2010. "Spatial productivity spillovers across Spanish municipalities," MPRA Paper 33603, University Library of Munich, Germany, revised 2010.
    5. Jesús Mur & Fernando López & Ana Angulo, 2010. "Instability in spatial error models: an application to the hypothesis of convergence in the European case," Journal of Geographical Systems, Springer, vol. 12(3), pages 259-280, September.
    6. repec:elg:eechap:14395_24 is not listed on IDEAS
    7. Guangqing Chi & Jun Zhu, 2008. "Spatial Regression Models for Demographic Analysis," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 27(1), pages 17-42, February.
    8. Pede, Valerien O. & Florax, Raymond J.G.M. & de Groot, Henri L.F., 2006. "The Role of Knowledge Externalities in the Spatial Distribution of Economic Growth: A Spatial Econometric Analysis for US Counties, 19692003," 2006 Annual meeting, July 23-26, Long Beach, CA 21157, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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