Industrial structure and innovation - evidence from European regions
Whether the composition of industrial activity influences innovation is the key question of this paper. The analysis is based on a model that integrates different kinds of diversity measures aiming at capturing Jacobs externalities, a production specialisation measure aiming at capturing Marshall-Arrow-Romer (MAR) externalities and regions as well as sector specific variables. Tested with an extended sample of 153 European regions and 16 manufacturing sectors, the estimates suggest that both kinds of externalities significantly influence innovation, although the influence of Jacobs externalities is more important in the context of "high density" regions as well as for high tech sectors.
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|Date of creation:||Dec 2004|
|Date of revision:|
|Publication status:||Published in: Journal of evolutionary economics (2004) v.14 n° 5,p.563-592|
|Contact details of provider:|| Postal: CP135, 50, avenue F.D. Roosevelt, 1050 Bruxelles|
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