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What determines the efficiency of regional innovation systems?

We assess the efficiency of regional innovation systems (RIS) in Germany by means of a knowledge production function. This function relates private sector research and development (R&D) activity in a region to the number of inventions that have been registered by residents of that region. Different measures and estimation approaches lead to rather similar assessments. We find that both spillovers within the private sector as well as from universities and other public research institutions have a positive effect on the efficiency of private sector R&D in the respective region. It is not the mere presence and size of public research institutions, but rather the intensity of interactions between private and public sector R&D that leads to high RIS efficiency. We find that relationship between the diversity of a regions’ industry structure and the efficiency of its innovation system is inversely u-shaped. Regions dominated by large establishments tend to be less efficient than regions with a lower average establishment size.

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Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2007-006.

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Date of creation: 20 Apr 2007
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Handle: RePEc:jrp:jrpwrp:2007-006
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  16. Michael Fritsch, 2003. "Does R&D-Cooperation Behavior Differ between Regions?," Industry and Innovation, Taylor & Francis Journals, vol. 10(1), pages 25-39.
  17. Leydesdorff, Loet & Fritsch, Michael, 2005. "Measuring the Knowledge Base of Regional Innovation Systems in Germany in terms of a Triple Helix Dynamics," Freiberg Working Papers 2005,10, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
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  23. Michael Fritsch & Viktor Slavtchev, 2007. "Industry Specialization, Diversity and the Efficiency of Regional Innovation Systems," Jena Economic Research Papers 2007-018, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  24. Meric S. Gertler, 2003. "Tacit knowledge and the economic geography of context, or The undefinable tacitness of being (there)," Journal of Economic Geography, Oxford University Press, vol. 3(1), pages 75-99, January.
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