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A taxonomy of European innovation clubs

Author

Listed:
  • Wirkierman, Ariel L.

    (Institute of Management Studies(IMS), Goldsmiths, University of London)

  • Ciarli, Tommaso

    (UNU-MERIT, and Science Policy Research Unit (SPRU), University of Sussex)

  • Savonna, Maria

    (Science Policy Research Unit (SPRU), University of Sussex, and Department of Economics and Finance, Luiss University)

Abstract

The paper provides a novel, empirically grounded map of innovation 'clubs' in the EU, based on a unique analysis of micro-aggregated, country-level data. Using exploratory factor analysis we articulate innovation variables in a taxonomy of four 'latent' innovation theories: Network-Innovation-System, Kaldorian, New-Growth-Theory, and Schumpeterian. We then characterise clusters of countries ('clubs'), based on their performance against this taxonomy, and design a new map of EU innovation clubs. We identify an articulated map of EU innovation hierarchy beyond the rather well-known 'core-periphery' structure, and interpret how some of the peripheries are functional to the 'consolidated core' of innovative countries, raising an issue of long-term sustainability of such hierarchies. We also find that even the most innovative clusters show concerning weaknesses. The strongest cluster in terms of its innovation system does not seem to exploit its full potential and lags behind with respect to radical product innovations. Instead, the leading cluster in terms of radical product innovations is strongly dependent on external innovative activity, is focused on scale-intensive sectors, and has a fairly weak innovation system. The periphery of small countries that show a healthy network structure, do so because they mainly include supplier-dominated firms, reliant on innovation inputs from the core. We offer some reactions on innovation policy within a broader view of EU cohesion.

Suggested Citation

  • Wirkierman, Ariel L. & Ciarli, Tommaso & Savonna, Maria, 2021. "A taxonomy of European innovation clubs," MERIT Working Papers 2021-020, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2021020
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    Cited by:

    1. Filippo Bontadini & Rinaldo Evangelista & Valentina Meliciani & Maria Savona, 2021. "Asymmetries in Global Value Chain Integration, Technology and Employment Structures in Europe: Country and Sectoral Evidence," CESifo Working Paper Series 9438, CESifo.
    2. Leogrande, Angelo & Drago, Carlo & Mallardi, Giulio & Costantiello, Alberto & Magaletti, Nicola, 2024. "Patenting Propensity in Italy: A Machine Learning Approach to Regional Clustering," MPRA Paper 123081, University Library of Munich, Germany.
    3. repec:osf:socarx:nftv3_v1 is not listed on IDEAS
    4. Bontadini, Filippo & Evangelista, Rinaldo & Meliciani, Valentina & Savona, Maria, 2024. "Technology, global value chains and functional specialisation in Europe," Research Policy, Elsevier, vol. 53(2).
    5. Ariel L. Wirkierman & Tommaso Ciarli & Maria Savona, 2023. "A taxonomy of European innovation clubs," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 40(1), pages 1-34, April.

    More about this item

    Keywords

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    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis

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