IDEAS home Printed from https://ideas.repec.org/p/gbl/wpaper/2012-06.html
   My bibliography  Save this paper

An 'extended" Knowledge Production Function approach to the genesis of innovation in the European regions

Author

Listed:
  • Charlot, S.
  • Crescenzi, R.
  • Musolesi, A.

Abstract

The paper looks at the genesis of innovation in the EU regions in ordre to shed light on the link between innovative inputs (R&D and Human Capital) and the genesis of economically valuable knowledge. The 'traditional' regional Knowledge Production Function (KPF) is innovatively developed in three complementary directions. Firs, the KPF is 'augmented' in order to control for all possible 'unobsrevable' and 'immesurable' time varying factors that influence the genesis of innovation (i.e. localised institutional and relational factors, regional innovation policies). Second, a semi-parametric approach that relaxes any arbitrary assumption on the 'shape' of the KPF is adopted. Finally, the assumption of homogeneity in the impact of R&D and Human Capital is relaxed by explicity accounting for the differences between 'core' and 'peripherial' regions. The econometric results confirm the importance of accounting for time varying unobserved heterogeneity through the adoption of a 'random growth' specification: R&D efforts exert a significant influence on innovation only after controlling for regional specific time varying unobserved factors. In addition, the semi parametric approach uncovers significant threshold effects for both R&D expenditure and Human Capital and highlights a strong complementarity between these two factors. However, 'core' regions benefit from a persistent advantage in terms of the 'productivity' of their innovation inputs. This has important implications for the EU innovation policies at the regional level.

Suggested Citation

  • Charlot, S. & Crescenzi, R. & Musolesi, A., 2012. "An 'extended" Knowledge Production Function approach to the genesis of innovation in the European regions," Working Papers 2012-06, Grenoble Applied Economics Laboratory (GAEL).
  • Handle: RePEc:gbl:wpaper:2012-06
    as

    Download full text from publisher

    File URL: https://gael.univ-grenoble-alpes.fr/sites/gael/files/doc-recherche/WP/A2012/gael2012-06.pdf
    Download Restriction: no

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andrés Rodríguez-Pose & Marco Di Cataldo, 2015. "Quality of government and innovative performance in the regions of Europe," Journal of Economic Geography, Oxford University Press, vol. 15(4), pages 673-706.
    2. Roberta Capello & Camilla Lenzi, 2015. "The Knowledge–Innovation Nexus. Its Spatially Differentiated Returns to Innovation," Growth and Change, Wiley Blackwell, vol. 46(3), pages 379-399, September.
    3. M. Foddi & S. Usai, 2012. "Regional innovation performance in Europe," Working Paper CRENoS 201221, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    4. Roberta Capello & Camilla Lenzi, 2014. "Spatial Heterogeneity In Knowledge, Innovation, And Economic Growth Nexus: Conceptual Reflections And Empirical Evidence," Journal of Regional Science, Wiley Blackwell, vol. 54(2), pages 186-214, March.

    More about this item

    Keywords

    INNOVATION; REGION; KNOWLEDGE PRODUCTION FUNCTION; SEMI PARAMETRIC MODEL; EUROPE;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • 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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gbl:wpaper:2012-06. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Agnès Vertier). General contact details of provider: http://edirc.repec.org/data/inragfr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.