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Econometric modelling of the regional knowledge production function in Europe

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  • Charlot, Sylvie
  • Crescenzi, Riccardo
  • Musolesi, Antonio

Abstract

By adopting a semiparametric approach, the ‘traditional’ regional knowledge production function is developed in three complementary directions. First, the model is augmented with region-specific time trends to account for endogeneity due to selection on unobservables. Second, the nonparametric part of the model relaxes the standard assumptions of linearity and additivity regarding the effect of R&D and human capital. Finally, the assumption of homogeneity in the effects of R&D and human capital is also relaxed by explicitly accounting for the differences between developed and lagging regions. The analysis of the genesis of innovation in the regions of the European Union unveils nonlinearities, threshold effects, complex interactions and shadow

Suggested Citation

  • Charlot, Sylvie & Crescenzi, Riccardo & Musolesi, Antonio, 2015. "Econometric modelling of the regional knowledge production function in Europe," LSE Research Online Documents on Economics 60088, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:60088
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    Cited by:

    1. Bhatt, Ayushman & Kato, Hironori, 2021. "High-speed rails and knowledge productivity: A global perspective," Transport Policy, Elsevier, vol. 101(C), pages 174-186.
    2. Riccardo Crescenzi & Alexander Jaax, 2017. "Innovation in Russia: The Territorial Dimension," Economic Geography, Taylor & Francis Journals, vol. 93(1), pages 66-88, January.
    3. Tiago Neves Sequeira & Pedro Cunha Neves, 2020. "Stepping on toes in the production of knowledge: a meta-regression analysis," Applied Economics, Taylor & Francis Journals, vol. 52(3), pages 260-274, January.
    4. Nathan Goldschlag & Stefano Bianchini & Julia Lane & Joseba SanMartin Sola & Bruce Weinberg, 2016. "Research Funding and Regional Economies," Working Papers 16-32, Center for Economic Studies, U.S. Census Bureau.
    5. Giuseppe Medda, 2020. "External R&D, product and process innovation in European manufacturing companies," The Journal of Technology Transfer, Springer, vol. 45(1), pages 339-369, February.
    6. Nathan Goldschlag & Julia Lane & Bruce A. Weinberg & Nikolas Zolas, 2019. "Proximity and economic activity: An analysis of vendor‐university transactions," Journal of Regional Science, Wiley Blackwell, vol. 59(1), pages 163-182, January.
    7. Arkadiusz Kijek & Tomasz Kijek, 2019. "Knowledge Spillovers: An Evidence from The European Regions," JOItmC, MDPI, vol. 5(3), pages 1-15, September.
    8. Orea, Luis & Álvarez, Inmaculada C., 2019. "Spatial Production Economics," Efficiency Series Papers 2019/06, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    9. Andre Jungmittag & Paul J.J. Welfens, 2016. "Beyond EU-US Trade Dynamics: TTIP Effects Related to Foreign Direct Investment and Innovation," EIIW Discussion paper disbei212, Universitätsbibliothek Wuppertal, University Library.
    10. De Noni, Ivan & Ganzaroli, Andrea & Orsi, Luigi, 2017. "The impact of intra- and inter-regional knowledge collaboration and technological variety on the knowledge productivity of European regions," Technological Forecasting and Social Change, Elsevier, vol. 117(C), pages 108-118.
    11. Massimiliano Mazzanti & Antonio Musolesi, 2020. "A Semiparametric Analysis of Green Inventions and Environmental Policies," SEEDS Working Papers 0920, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Jun 2020.
    12. Bruno, Randolph L. & Crescenzi, Riccardo & Estrin, Saul & Petralia, Sergio, 2021. "Multinationals, innovation and institutional context: IPR protection and distance effects," LSE Research Online Documents on Economics 110441, London School of Economics and Political Science, LSE Library.
    13. Massimiliano Mazzanti & Antonio Musolesi, 2020. "Modeling Green Knowledge Production and Environmental Policies with Semiparametric Panel Data Regression models," SEEDS Working Papers 1420, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Sep 2020.
    14. Walid Oueslati & Vera Zipperer & Damien Rousselière & Alexandros Dimitropoulos, 2017. "Energy taxes, reforms and income inequality: An empirical cross-country analysis," International Economics, CEPII research center, issue 150, pages 80-95.
    15. Neves, Pedro Cunha & Sequeira, Tiago Neves, 2018. "Spillovers in the production of knowledge: A meta-regression analysis," Research Policy, Elsevier, vol. 47(4), pages 750-767.
    16. Komikado, Hiroshi & Morikawa, So & Bhatt, Ayushman & Kato, Hironori, 2021. "High-speed rail, inter-regional accessibility, and regional innovation: Evidence from Japan," Technological Forecasting and Social Change, Elsevier, vol. 167(C).

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    More about this item

    Keywords

    innovation; Europe; R&D; regional knowledge production function; semiparametric models; endogenous selection; random growth model;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • 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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