IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i2p832-d723045.html
   My bibliography  Save this article

Club Convergence in R&D Expenditure across European Regions

Author

Listed:
  • Tomasz Kijek

    (Department of Microeconomics and Applied Economics, Maria Curie Sklodowska University, Plac Marii Curie-Skłodowskiej 5, 20-031 Lublin, Poland)

  • Arkadiusz Kijek

    (Department of Statistics and Econometrics, Maria Curie Sklodowska University, Plac Marii Curie-Skłodowskiej 5, 20-031 Lublin, Poland)

  • Anna Matras-Bolibok

    (Department of Microeconomics and Applied Economics, Maria Curie Sklodowska University, Plac Marii Curie-Skłodowskiej 5, 20-031 Lublin, Poland)

Abstract

The increasing disparities between European regions constitute a great challenge for sustainable development and require identification of the factors responsible for this process. Given the substantive role of R&D in shaping innovativeness and economic development, understanding its dynamics and spatial patterns can provide new insights into regional growth prospects. Although prior studies have investigated the patterns of innovation convergence, apparently none has attempted to test the convergence club hypothesis in R&D expenditure in the European regional scope. Therefore, the present study aims to fill this gap. The paper aims at examining the convergence path of R&D expenditure across European regions and at identifying the factors conditioning club membership. Data were retrieved from Eurostat’s regional database and Regional Innovation Scoreboard datasets over 2008–2018. Employing a nonlinear time-varying factor model, we reveal that R&D expenditure in the examined regions follows the pattern of club convergence. The results of our research allow to identify five convergence clubs characterised by distinct disparities in the R&D expenditures. We also demonstrate that the emergence of the identified convergence clubs might be attributable to the initial differences in human capital, external knowledge embedded in patents and technological structures across regions as measured by employment in medium-high and high-tech manufacturing and knowledge-intensive services. These results provide policy implications in terms of the formulation and implementation of more tailored innovation policies, based on smart development and specialisation strategies. The presence of business R&D convergence clubs requires shifting EU policy actions towards a more sustainable model promoting both the advantages of the strongest regions and the development opportunities in less-developed ones.

Suggested Citation

  • Tomasz Kijek & Arkadiusz Kijek & Anna Matras-Bolibok, 2022. "Club Convergence in R&D Expenditure across European Regions," Sustainability, MDPI, vol. 14(2), pages 1-17, January.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:2:p:832-:d:723045
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/2/832/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/2/832/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Sheila Chapman & Valentina Meliciani, 2017. "Behind the Pan-European Convergence Path: The Role of Innovation, Specialisation and Socio-economic Factors," Growth and Change, Wiley Blackwell, vol. 48(1), pages 61-90, March.
    3. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    4. Beñat Bilbao‐Osorio & Andrés Rodríguez‐Pose, 2004. "From R&D to Innovation and Economic Growth in the EU," Growth and Change, Wiley Blackwell, vol. 35(4), pages 434-455, September.
    5. Sterlacchini, Alessandro, 2008. "R&D, higher education and regional growth: Uneven linkages among European regions," Research Policy, Elsevier, vol. 37(6-7), pages 1096-1107, July.
    6. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    7. Cameron, Gavin & Proudman, James & Redding, Stephen, 2005. "Technological convergence, R&D, trade and productivity growth," European Economic Review, Elsevier, vol. 49(3), pages 775-807, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Barbara Dañska-Borsiak, 2023. "Human capital convergence in European NUTS 2 regions," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 18(2), pages 367-392, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Johanna Vogel, 2015. "The two faces of R&D and human capital: Evidence from Western European regions," Papers in Regional Science, Wiley Blackwell, vol. 94(3), pages 525-551, August.
    2. Andrés Rodríguez-Pose & Callum Wilkie, 2018. "Strategies of gain and strategies of waste: What determines the success of development intervention?," Papers in Evolutionary Economic Geography (PEEG) 1826, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2018.
    3. Robert Huggins & Hiro Izushi, 2013. "Knowledge-based Development in Leading Regions across the Globe: An Exploratory Analysis of the co-Evolution of Resources, Capabilities and Outputs," Urban Studies, Urban Studies Journal Limited, vol. 50(5), pages 1030-1048, April.
    4. Adolfo Maza & José Villaverde & María Hierro, 2014. "Should cohesion policy focus on fostering R&D? Evidence from Spain," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 29, pages 139-164.
    5. Bettina Becker, 2013. "The Determinants of R&D Investment: A Survey of the Empirical Research," Discussion Paper Series 2013_09, Department of Economics, Loughborough University, revised Sep 2013.
    6. Matija Rojec & Mark Knell, 2018. "Why Is There A Lack Of Evidence On Knowledge Spillovers From Foreign Direct Investment?," Journal of Economic Surveys, Wiley Blackwell, vol. 32(3), pages 579-612, July.
    7. Nguyen, Canh Phuc & Doytch, Nadia, 2022. "The impact of ICT patents on economic growth: An international evidence," Telecommunications Policy, Elsevier, vol. 46(5).
    8. Andrés Rodríguez-Pose & Marco Di Cataldo, 2015. "Quality of government and innovative performance in the regions of Europe," Journal of Economic Geography, Oxford University Press, vol. 15(4), pages 673-706.
    9. Ejike Udeogu & Shampa Roy-Mukherjee & Uzochukwu Amakom, 2021. "Does Increasing Product Complexity and Diversity Cause Economic Growth in the Long-Run? A GMM Panel VAR Evidence," SAGE Open, , vol. 11(3), pages 21582440211, August.
    10. Oyinlola, Mutiu A. & Adedeji, Abdulfatai A. & Onitekun, Olumide, 2021. "Human capital, innovation, and inclusive growth in sub-Saharan African Region," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 609-625.
    11. Andrzej Kacprzyk & Wirginia Doryn, 2014. "Innovation and Economic Growth in European Union. Panel Data Analysis," Lodz Economics Working Papers 3/2014, University of Lodz, Faculty of Economics and Sociology, revised Jun 2015.
    12. Saima Javed & Yu Rong & Hafiz Muhammad Ihsan Zafeer & Samra Maqbool & Babar Nawaz Abbasi, 2024. "Unleashing the potential: a quest to understand and examine the factors enriching research and innovation productivities of South Asian universities," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    13. I. Hakan Yetkiner, 2006. "Saglik ile Buyume," Ege Academic Review, Ege University Faculty of Economics and Administrative Sciences, vol. 6(2), pages 83-91.
    14. Mark Knell & Simone Vannuccini, 2022. "Tools and concepts for understanding disruptive technological change after Schumpeter," Jena Economics Research Papers 2022-005, Friedrich-Schiller-University Jena.
    15. Mauro Napoletano & Jean-Luc Gaffard, 2010. "Performances et politiques de croissance. Un éclairage empirique à partir d'une étude de l'effet de la taille des pays et nouvelles réflexions théoriques," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(1), pages 213-248.
    16. Pozzolo, Alberto Franco, 2004. "Endogenous Growth in Open Economies - A Survey of Major Results," Economics & Statistics Discussion Papers esdp04020, University of Molise, Department of Economics.
    17. Pedro de Faria & Francisco Lima, 2012. "Interdependence and spillovers: is firm performance affected by others’ innovation activities?," Applied Economics, Taylor & Francis Journals, vol. 44(36), pages 4765-4775, December.
    18. Jaewon Lim & Changkeun Lee & Euijune Kim, 2015. "Contributions of human capital investment policy to regional economic growth: an interregional CGE model approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 55(2), pages 269-287, December.
    19. Diemer, Andreas & Regan, Tanner, 2022. "No inventor is an island: Social connectedness and the geography of knowledge flows in the US," Research Policy, Elsevier, vol. 51(2).
    20. Duranton, Gilles & Puga, Diego, 2014. "The Growth of Cities," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 5, pages 781-853, Elsevier.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:2:p:832-:d:723045. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.