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Between spilling over and boiling down: network-mediated spillovers, absorptive capacity and productivity in European regions

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Listed:
  • Nicola Cortinovis

    () (Erasmus University Rotterdam)

  • Frank van Oort

    () (ESE EUR, IHS EUR, Utrecht University)

Abstract

Productivity across European regions is related to three types of networks that mediate R&D-related knowledge spillovers: trade, co-patenting and geographical proximity. Both our panel and instrumental variable estimations for European regions suggest that network relations are crucial sources of R&D spillovers, but with potentially different features. While co-patenting relations appear to affect local productivity directly, regions that link up to innovative leader regions via imports gain in productivity only when they have relatively high levels of human capital and absorptive capacity. From a policy perspective, this may frustrate recent European policy initiatives, such as Smart Specialization, that are designed to benefit all regions in Europe.

Suggested Citation

  • Nicola Cortinovis & Frank van Oort, 2017. "Between spilling over and boiling down: network-mediated spillovers, absorptive capacity and productivity in European regions," Tinbergen Institute Discussion Papers 17-118/VI, Tinbergen Institute.
  • Handle: RePEc:tin:wpaper:20170118
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    File URL: https://papers.tinbergen.nl/17118.pdf
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    Cited by:

    1. Rodolfo Campos & Jacopo Timini, 2019. "An estimation of the effects of Brexit on trade and migration," Occasional Papers 1912, Banco de España;Occasional Papers Homepage.

    More about this item

    Keywords

    productivity; economic networks; regions; Europe; trade; knowledge;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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