IDEAS home Printed from
   My bibliography  Save this paper

What determines the embeddedness of European regions in EU funded R&D networks? Evidence using graph theoretic approaches and spatial panel modeling techniques


  • Iris Wanzenböck
  • Thomas Scherngell


  • Rafael Lata



In the recent past, regional, national and supranational Science, Innovation and Technology (STI) policies have emphasized supporting interactions and networks between organisations of the innovation system. The policy instrument of the EU in this context are the European Framework Programmes (FPs) that support pre-competitive R&D projects, creating a pan-European network of actors performing joint R&D. In this study, we focus on the embeddedness of European regions in this network. By embeddedness we refer to the notion of centrality in the sense of the Social Network Analysis (SNA) literature. In network theory, vertices that have a more prominent and central network position will more likely benefit from network advantages than actors that have a more distant, peripheral position in the network. A higher network embeddedness of a region, i.e. of organisations located in that region, may increase information and knowledge access in the network, and, thus, create a competitive advantage when it comes to the formation of new collaborations and alliances. The objective of the study is to explain why some regions are able to obtain a better network embeddedness in the European network of R&D cooperation than other regions. For this reason we aim to identify determinants that influence a region´s embededdness, involving region-internal factors, such as regional characteristics on their innovation capability, their economic structure and technological specialisation, as well as region-external factors considering the influence of these variables in the neighbourhood of a specific region, referred to as spatial spillovers. To address this question we employ spatial panel modelling techniques, explicitly taking into account the time dimension in our data and the influence of spillovers by specifying a panel spatial durbin error model (SDEM). The dependent variable is the regions’ centrality in the FP network for the years 1998-2006, using a sample of 241 NUTS-regions of the EU-25 member states. We aggregate individual FP cooperations to the regional level leading to a network where the nodes are represented by regions and the edges by cross-region collaboration intensities. Using these matrices we calculate a region’s centrality relying on two different centrality concepts, namely betweeness- and eigenvector centrality. The independent variables involve regional characteristics related to a region’s knowledge production capacity and a region’s general economic structure. The results will significantly enrich our understanding of the relationship between a regions network embededdness and its internal and external characteristics. JEL Classification: C02, C49, L14, O39, O52 Keywords: R&D cooperation, European Framework Program, large-scale networks, network embeddedness, panel spatial Durbin model

Suggested Citation

  • Iris Wanzenböck & Thomas Scherngell & Rafael Lata, 2012. "What determines the embeddedness of European regions in EU funded R&D networks? Evidence using graph theoretic approaches and spatial panel modeling techniques," ERSA conference papers ersa12p451, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa12p451

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Lavoie, Marc, 1996. "Horizontalism, Structuralism, Liquidity Preference and the Principle of Increasing Risk," Scottish Journal of Political Economy, Scottish Economic Society, vol. 43(3), pages 275-300, August.
    2. Louis-Philippe Rochon & Mark Setterfield, 2007. "Interest rates, income distribution, and monetary policy dominance: Post Keynesians and the "fair rate" of interest," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 30(1), pages 13-42.
    3. Stephen P. Dunn, 2001. "Bounded Rationality Is Not Fundamental Uncertainty: A Post Keynesian Perspective," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 23(4), pages 567-587, July.
    4. Scott T. Fullwiler, 2006. "Setting interest rates in the modern money era," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 28(3), pages 496-525.
    5. Paul Davidson, 1991. "Is Probability Theory Relevant for Uncertainty? A Post Keynesian Perspective," Journal of Economic Perspectives, American Economic Association, pages 129-143.
    6. Graziani,Augusto, 2003. "The Monetary Theory of Production," Cambridge Books, Cambridge University Press, number 9780521812115, December.
    7. De Grauwe, Paul, 2011. "Governance of a Fragile Eurozone," CEPS Papers 5523, Centre for European Policy Studies.
    8. Louis-Philippe Rochon, 1999. "Credit, Money and Production," Books, Edward Elgar Publishing, number 1565, September.
    9. Paul Davidson, 1986. "Finance, Funding, Saving, and Investment," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 9(1), pages 101-110, September.
    10. Paul Davidson, 1996. "Reality and Economic Theory," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 18(4), pages 479-508, July.
    11. Ron Martin, 2011. "The local geographies of the financial crisis: from the housing bubble to economic recession and beyond," Journal of Economic Geography, Oxford University Press, vol. 11(4), pages 587-618, July.
    12. L. R. Wray, 1990. "Money and Credit in Capitalist Economies," Books, Edward Elgar Publishing, number 474, September.
    13. Bell, Stephanie, 2001. "The Role of the State and the Hierarchy of Money," Cambridge Journal of Economics, Oxford University Press, vol. 25(2), pages 149-163, March.
    14. David Dequech, 2000. "Fundamental Uncertainty and Ambiguity," Eastern Economic Journal, Eastern Economic Association, vol. 26(1), pages 41-60, Winter.
    15. Thomas Palley, 2004. "Asset-based reserve requirements: reasserting domestic monetary control in an era of financial innovation and instability," Review of Political Economy, Taylor & Francis Journals, vol. 16(1), pages 43-58.
    16. Stephanie Bell & L. Randall Wray, 2002. "Fiscal effects on reserves and the independence of the Fed," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 25(2), pages 263-271.
    Full references (including those not matched with items on IDEAS)

    More about this item

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • C49 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Other
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • O39 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Other
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa12p451. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.