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How Does Industry Specialization Affect the Efficiency of Regional Innovation Systems?

Author

Listed:
  • Michael Fritsch

    (Friedrich-Schiller-University Jena, Faculty of Economics and Business Administration; Max Planck Institute of Economics, Jena, Germany)

  • Viktor Slavtchev

    (Max Planck Institute of Economics, Jena, Germany)

Abstract

This study analyzes the relationship between the specialization of a region in certain industries and the efficiency of the region in generating new knowledge. The efficiency measure is constructed by relating regional R&D input and output. An inversely u-shaped relationship is found between regional specialization and R&D efficiency, indicating the presence of externalities of both Marshall and Jacobs’ type. Further factors influencing efficiency are spillovers within the private sector as well as from public research institutions. The impact of both the specialization and the additional factors is, however, different for regions at different efficiency levels.

Suggested Citation

  • Michael Fritsch & Viktor Slavtchev, 2008. "How Does Industry Specialization Affect the Efficiency of Regional Innovation Systems?," Jena Economics Research Papers 2008-058, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2008-058
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    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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