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articles: Is R&D investment in lagging areas of Europe worthwhile? Theory and empirical evidence

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  • Andrés Rodríguez-Pose

    () (Department of Geography and Environment, London School of Economics, Houghton Street, London WC2A 2AE, UK)

Abstract

Is R&D investment in lagging areas worthwhile? There is no simple answer, nor is there universal theoretical agreement on the question. The Schumpeterian strand of the endogenous growth approach highlights the advantages of spatially concentrating the research and development (R&D) effort in a few areas, in order to maximise external economies and technological spillovers. Innovation is then expected to spill over from these technologically advanced areas into neighbouring regions . The neoclassical view, in contrast, considers that decreasing returns render investment in core areas increasingly less efficient, and makes investment in peripheries more effective. The regional policy view holds that public investment in R&D in lagging regions triggers economic convergence, because it limits congestion in the centre, helps to keep talent, and generates spin-offs in lagging areas. This article surveys these strands and highlights the advantages and disadvantages of investing in R& ;D in lagging regions. I then turn to the evolution of R&D investment across regions in Western Europe.

Suggested Citation

  • Andrés Rodríguez-Pose, 2001. "articles: Is R&D investment in lagging areas of Europe worthwhile? Theory and empirical evidence," Papers in Regional Science, Springer;Regional Science Association International, vol. 80(3), pages 275-295.
  • Handle: RePEc:spr:presci:v:80:y:2001:i:3:p:275-295
    Note: Received: 7 October 2000
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    Cited by:

    1. Fratesi, Ugo, 2007. "The Spatial Diffusion of Innovations and the Evolution of Regional Disparities," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 11, pages 131-160.
    2. López-Rodríguez , Jesús & Faíña, Andrés, 2007. "Regional Wage Disparities in Europe: What role for Market Access?," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 11, pages 5-23.
    3. Paolo Guerrieri & Simona Iammarino, 2003. "The Dynamics of Export Specialisation in the Regions of the Italian Mezzogiorno: Persistence and Change," SPRU Working Paper Series 105, SPRU - Science and Technology Policy Research, University of Sussex.
    4. Rosina Moreno & Raffaele Paci & Stefano Usai, 2004. "Innovation and production clusters in Europe," ERSA conference papers ersa04p587, European Regional Science Association.
    5. Ugo Fratesi, 2003. "Innovation Diffusion and the Evolution of Regional Disparities," ERSA conference papers ersa03p327, European Regional Science Association.
    6. Gündüz Atalik & Seda Kundak, 2004. "Effects of innovation diffusion on the development level for some European regions in the expansion period of the European Union," ERSA conference papers ersa04p30, European Regional Science Association.

    More about this item

    Keywords

    R&D; technology; spillovers; economic growth; regions; Western Europe;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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