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The effects of public research and subsidies on regional structural strength

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  • Thomas Brenner

    (Philipps-Universität Marburg)

  • Franziska Pudelko

    (Philipps-Universität Marburg)

Abstract

The paper analyzes the effects of public research (publications) and research and education subsidies on regional structural strength. To this end it takes new approaches in two respects: First, we use a vector auto-regressive (VAR) model to detect reciprocal effects. Second, we introduce a new measure for structural strength based on the regions’ industrial composition. We find that the effects of public research and public subsidies differ depending on the location’s innovativeness. Both scientific activity and public subsidies are found to have positive effects on regional structural strength in less innovative and economically weak regions, but low or even negative effects in economically strong regions.

Suggested Citation

  • Thomas Brenner & Franziska Pudelko, 2019. "The effects of public research and subsidies on regional structural strength," Journal of Evolutionary Economics, Springer, vol. 29(5), pages 1433-1458, November.
    • Handle: RePEc:spr:joevec:v:29:y:2019:i:5:d:10.1007_s00191-019-00626-x
    DOI: 10.1007/s00191-019-00626-x
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    More about this item

    Keywords

    Structural strength; Structural change; Public research; VAR model; Spatial effects;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R50 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - General

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