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Regional Dynamics of Innovation - Investigating the Co-Evolution of Patents, R&D, and Employment


  • Matthias Buerger


  • Tom Broekel


  • Alex Coad



We investigate the lead-lag relationship between growth of patent applications, growth of R&D, and growth of total sectoral employment for 270 German labour market regions over the period 1999-2005. Our unique panel dataset includes information on four two-digit industries, namely Chemistry, Transport equipment, Medical & Optical Equipment as well as Electrics & Electronics. The results obtained from a vector autoregression model show that an increased innovative activity is associated with subsequent growth of employment in the Medical & Optical Equipment industry as well as in the Electrics & Electronics sector. With respect to the latter growth of patent applications is also associated with subsequent growth of R&D employees indicating either a 'success-breeds-success' story or benefits due to agglomeration economies at the level of the region. However we do not find those effects for the other industries due to their idiosyncratic innovation and patenting behaviour.

Suggested Citation

  • Matthias Buerger & Tom Broekel & Alex Coad, 2009. "Regional Dynamics of Innovation - Investigating the Co-Evolution of Patents, R&D, and Employment," Papers in Evolutionary Economic Geography (PEEG) 0908, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jun 2009.
  • Handle: RePEc:egu:wpaper:0908

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    References listed on IDEAS

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    Cited by:

    1. Matthias Duschl & Thomas Brenner, 2013. "Growth dynamics in regional systems of technological activities – A SVAR approach," Working Papers on Innovation and Space 2013-12, Philipps University Marburg, Department of Geography.
    2. Christian, Dreger & Georg, Erber, 2010. "Regionale Innovationssysteme der EU im Prozess der Globalisierung
      [Regional EU-Innovationsystems under Transformation in the Process of Globalisation]
      ," MPRA Paper 26112, University Library of Munich, Germany, revised 25 Oct 2010.

    More about this item


    innovation; regional dynamics; r&d growth; employment growth; patent growth;

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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