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Regional Dynamics of Innovation Investigating the Co-Evolution of Patents, R&D, and Employment


  • Matthias Bürger

    () (Friedrich-Schiller-University Jena, RTG 1411 - The Economics of Innovative Change)

  • Tom Brökel

    (Utrecht University, Urban and Regional Research Centre Utrecht (URU))

  • Alex Coad

    (Max Planck Institute of Economics, Jena; Centre d'Economie de la Sorbonne, Univ. Paris 1)


We investigate the lead-lag relationship between growth of patent applications, growth of R&D, and growth of total sectoral employment for 270 German labour market regions over the period 1999-2005. Our unique panel dataset includes information on four two-digit industries, namely Chemistry, Transport equipment, Medical & Optical Equipment as well as Electrics & Electronics. The results obtained from a vector autoregression model show that an increased innovative activity is associated with subsequent growth of employment in the Medical & Optical Equipment industry as well as in the Electrics & Electronics sector. With respect to the latter growth of patent applications is also associated with subsequent growth of R&D employees indicating either a "success-breeds-success" story or benefits due to agglomeration economies at the level of the region. However we do not find those effects for the other industries due to their idiosyncratic innovation and patenting behaviour.

Suggested Citation

  • Matthias Bürger & Tom Brökel & Alex Coad, 2009. "Regional Dynamics of Innovation Investigating the Co-Evolution of Patents, R&D, and Employment," Jena Economic Research Papers 2009-046, Friedrich-Schiller-University Jena.
  • Handle: RePEc:jrp:jrpwrp:2009-046

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    References listed on IDEAS

    1. Oliver Falck & Stephan Heblich & Elke Lüdemann, 2009. "Identity and Entrepreneurship," CESifo Working Paper Series 2661, CESifo Group Munich.
    2. repec:nbr:nberch:3044 is not listed on IDEAS
    3. AndrewE. Clark & Nicolai Kristensen & Niels Westergård-Nielsen, 2009. "Job Satisfaction and Co-worker Wages: Status or Signal?," Economic Journal, Royal Economic Society, vol. 119(536), pages 430-447, March.
    4. Davidsson, Per & Honig, Benson, 2003. "The role of social and human capital among nascent entrepreneurs," Journal of Business Venturing, Elsevier, vol. 18(3), pages 301-331, May.
    5. Ederer, Florian & Patacconi, Andrea, 2010. "Interpersonal comparison, status and ambition in organizations," Journal of Economic Behavior & Organization, Elsevier, vol. 75(2), pages 348-363, August.
    6. Mariassunta Giannetti & Andrei Simonov, 2009. "Social Interactions and Entrepreneurial Activity," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(3), pages 665-709, September.
    7. Cramer, J. S. & Hartog, J. & Jonker, N. & Van Praag, C. M., 2002. "Low risk aversion encourages the choice for entrepreneurship: an empirical test of a truism," Journal of Economic Behavior & Organization, Elsevier, vol. 48(1), pages 29-36, May.
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    Cited by:

    1. Christian, Dreger & Georg, Erber, 2010. "Regionale Innovationssysteme der EU im Prozess der Globalisierung
      [Regional EU-Innovationsystems under Transformation in the Process of Globalisation]
      ," MPRA Paper 26112, University Library of Munich, Germany, revised 25 Oct 2010.
    2. Matthias Duschl & Thomas Brenner, 2013. "Growth dynamics in regional systems of technological activities – A SVAR approach," Working Papers on Innovation and Space 2013-12, Philipps University Marburg, Department of Geography.

    More about this item


    Innovation; Agglomeration; Employment;

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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