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

  • 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)

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.

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Paper provided by Friedrich-Schiller-University Jena in its series Jena Economic Research Papers with number 2008-058.

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Date of creation: 17 Jul 2008
Date of revision:
Handle: RePEc:jrp:jrpwrp:2008-058
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  25. repec:fth:harver:1473 is not listed on IDEAS
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