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Local Factors and Innovativeness – An Empirical Analysis of German Patents for Five Industries

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  • Tom Broekel
  • Thomas Brenner

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Abstract

A growing body of work emphasizes the role that the spatial component plays in the innovation process. These perspectives brought the region's infrastructure and its endowment with crucial factors into the focus of research. Given that these factors do significantly influence the innovativeness of local firms, it is important to identify precisely which regional characteristics matter. The aim of this paper is to identify a number of key influences out of a multitude of structural factors that are thought to influence the firm's innovation activity. We examine more than eighty variables that approximate the financial, geographical and social-economic factor endowment of a region. The variables are tested with a linear and log - linear model. The two staged procedure examines the variable's bivariate correlation with patent data of five industries. Based on these outcomes multivariate regression models are applied in the second stage. The results for the different models are compared and their advantages and disadvantages are discussed. We find a strong impact of economic agglomeration, extramural science institutions and human capital. In the case of human capital, especially the graduates at the technical colleges are collocated with high regional innovativeness. Furthermore, significant differences are observed for the five industries and for using the two models.

Suggested Citation

  • Tom Broekel & Thomas Brenner, 2005. "Local Factors and Innovativeness – An Empirical Analysis of German Patents for Five Industries," Papers on Economics and Evolution 2005-09, Philipps University Marburg, Department of Geography.
  • Handle: RePEc:esi:evopap:2005-09
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    References listed on IDEAS

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    1. Thomas Brenner & Siegfried Greif, 2006. "The Dependence of Innovativeness on the Local Firm Population—An Empirical Study of German Patents," Industry and Innovation, Taylor & Francis Journals, vol. 13(1), pages 21-39.
    2. Karl Brenke & Kurt Geppert & Rainer Hopf & Ingo Pfeiffer & Katharina C. Spieß & Dieter Vesper & Gert G. Wagner, 2002. "Bausteine für die Zukunft Berlins," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 69(10), pages 163-180.
    3. Beise, Marian & Stahl, Harald, 1999. "Public research and industrial innovations in Germany," Research Policy, Elsevier, vol. 28(4), pages 397-422, April.
    4. Audretsch, David B, 1998. "Agglomeration and the Location of Innovative Activity," Oxford Review of Economic Policy, Oxford University Press, vol. 14(2), pages 18-29, Summer.
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    Cited by:

    1. Tom Broekel, 2007. "A Concordance between Industries and Technologies Matching the technological fields of the Patentatlas to the German Industry Classification," Jena Economic Research Papers 2007-041, Friedrich-Schiller-University Jena.
    2. Tom Broekel & Thomas Brenner, 2007. "Measuring Regional Innovativeness - A Methodological Discussion and an Application to One German Industry," Jena Economic Research Papers 2007-065, Friedrich-Schiller-University Jena.

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