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Regional clusters of innovative activity in Europe: are social capital and geographical proximity key determinants?

Author

Listed:
  • Laura de Dominicis
  • Raymond J.G.M. Florax
  • Henri L.F. de Groot

Abstract

Finding proper policy instruments to promote productivity growth features prominently in the Europe 2020 strategy and is central in many national as well as European policy debates. In view of the increased mobility of high-skilled workers in Europe, ongoing globalization and increased interregional and international co-operation, location patterns of innovative activity may be subject to drastic changes. A proper understanding of location patterns of innovative outputs can enhance the effectiveness and efficiency of national and European placed-based innovation policies. Building on the literature on the knowledge production function, the aim of this article is to explain the observed differences in the production of innovative outputs across European regions. Our main research question is whether geographical proximity and social capital are important vehicles of knowledge transmission in Europe. Several other variables are used to control for structural differences across European regions. We find support for the hypothesis that both social capital and geographical proximity are important factors in explaining the observed differences in the production of innovative output across European regions.

Suggested Citation

  • Laura de Dominicis & Raymond J.G.M. Florax & Henri L.F. de Groot, 2013. "Regional clusters of innovative activity in Europe: are social capital and geographical proximity key determinants?," Applied Economics, Taylor & Francis Journals, vol. 45(17), pages 2325-2335, June.
  • Handle: RePEc:taf:applec:45:y:2013:i:17:p:2325-2335
    DOI: 10.1080/00036846.2012.663474
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    References listed on IDEAS

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    1. repec:spr:empeco:v:53:y:2017:i:3:d:10.1007_s00181-016-1153-x is not listed on IDEAS
    2. Jörg Breitung & Christoph Wigger, 2018. "Alternative GMM estimators for spatial regression models," Spatial Economic Analysis, Taylor & Francis Journals, vol. 13(2), pages 148-170, April.
    3. M. Aristizabal-Ramirez & G. Canavire-Bacarreza & F. Rios-Avila, 2015. "Revisiting the effects of innovation on growth: a threshold analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 22(18), pages 1474-1479, December.
    4. repec:spr:anresc:v:60:y:2018:i:3:d:10.1007_s00168-015-0729-2 is not listed on IDEAS
    5. Nakamura, Shohei, 2017. "Tenure Security Premium in Informal Housing Markets: A Spatial Hedonic Analysis," World Development, Elsevier, vol. 89(C), pages 184-198.
    6. Chi Keung Marco Lau & Fu Steve Yang & Zhe Zhang & Vincent K. K. Leung, 2015. "Determinants Of Innovative Activities: Evidence From Europe And Central Asia Region," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 60(01), pages 1-18.
    7. Sibylle Puntscher & Christoph Hauser & Janette Walde & Gottfried Tappeiner, 2016. "Measuring Social Capital with Aggregated Indicators: A Case of Ecological Fallacy?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(2), pages 431-449, January.
    8. Schild, Christopher-Johannes, 2013. "Generalized trust and regional innovation activity," FAU Discussion Papers in Economics 02/2012, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.
    9. Sibylle Puntscher & Christoph Hauser & Karin Pichler & Gottfried Tappeiner, 2014. "Social Capital and Collective Memory: A Complex Relationship," Kyklos, Wiley Blackwell, vol. 67(1), pages 116-132, February.
    10. Marusca De Castris & Daniele Di Gennaro, 2018. "Does agricultural subsidies foster Italian southern farms? A Spatial Quantile Regression Approach," Papers 1803.05659, arXiv.org.
    11. repec:elg:eechap:14395_24 is not listed on IDEAS
    12. Luciano Lavecchia, 2015. "A note on social capital, space and growth in Europe," Temi di discussione (Economic working papers) 1017, Bank of Italy, Economic Research and International Relations Area.
    13. Sibylle Puntscher & Christoph Hauser & Janette Walde & Gottfried Tappeiner, 2016. "Measuring Social Capital with Aggregated Indicators: A Case of Ecological Fallacy?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(2), pages 431-449, January.

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