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Regional Disparities And Innovations In Europe

  • TIIU PAAS

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    The paper focuses on quantitative assessment of the innovation’s role in explaining regional disparities and convergence in Europe. The empirical part of the study bases on the regional GDP pc and innovation indicators on the EU-27 NUTS2 level regions. Based on the selected set of initial innovation indicators for the 262 EU NUTS2 level regions and using the principal components factor analysis method, three composite indicators of regional innovation capacity are extracted. They explain around 80 % of the variation of the initial innovation indicators. The preliminary research results show that around 60% of variability of regional GDP per capita is explained by composite indicators of regional innovation performance and additional 20% are country specific factors. Estimating convergence equations, we noticed that regional innovations tend to increase inter-regional differences, at least during the short-run period. Thus, if regional income convergence is a policy target, additional policy measures beside innovation activities should be effectively implemented

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    File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa12/e120821aFinal00082.pdf
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    Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa12p80.

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    Date of creation: Oct 2012
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    Handle: RePEc:wiw:wiwrsa:ersa12p80
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    1. Robert J. Barro, 2012. "Inflation and Economic Growth," CEMA Working Papers 568, China Economics and Management Academy, Central University of Finance and Economics.
    2. Giuseppe Arbia & Roberto Basile & Gianfranco Piras, 2005. "Using Spatial Panel Data in Modelling Regional Growth and Convergence," ISAE Working Papers 55, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
    3. Kurt Geppert & Michael Happich & Andreas Stephan, 2005. "Regional Disparities in the European Union: Convergence and Agglomeration," Discussion Papers of DIW Berlin 525, DIW Berlin, German Institute for Economic Research.
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    7. Tiiu Paas & Friso Schlitte, 2006. "Regional Income Inequality and Convergence Processes in the EU-25," ERSA conference papers ersa06p229, European Regional Science Association.
    8. Giuseppe Arbia & Gianfranco Piras, 2004. "Convergence in per-capita GDP across European regions using panel data models extended to spatial autocorrelation effects," ERSA conference papers ersa04p524, European Regional Science Association.
    9. Robert J. Barro, 1989. "Economic Growth in a Cross Section of Countries," NBER Working Papers 3120, National Bureau of Economic Research, Inc.
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    13. Michela Nardo & Michaela Saisana & Andrea Saltelli & Stefano Tarantola & Anders Hoffman & Enrico Giovannini, 2005. "Handbook on Constructing Composite Indicators: Methodology and User Guide," OECD Statistics Working Papers 2005/3, OECD Publishing.
    14. Annekatrin Niebuhr & Friso Schlitte, 2004. "Convergence, trade and factor mobility in the European Union — Implications for enlargement and regional policy," Intereconomics: Review of European Economic Policy, Springer, vol. 39(3), pages 167-176, May.
    15. Juan R. Cuadrado-Roura, 2001. "Regional convergence in the European Union: From hypothesis to the actual trends," The Annals of Regional Science, Springer, vol. 35(3), pages 333-356.
    16. Valentina Meliciani & Franco Peracchi, 2004. "Convergence in Per-capita GDP Across European Regions: A Reappraisal," CEIS Research Paper 58, Tor Vergata University, CEIS.
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