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Regional Convergence and R&D Investment: Applied investigation in Portugal

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  • Gertrudes Guerreiro
  • António Guerreiro

Abstract

R&D investments are seen has having an enormous potential impact on the competitive position of regions and perhaps on regional convergence (or divergence) too. The aim of the paper is to study both the localization of R&D investments and regional income distribution among the NUTs 3 regions of Portugal to conclude if these variables are related or not. We intend to answer questions like if geography influences the pattern of R&D investments and inequality, and if these ones reveal the presence of spatial correlation. Furthermore, we evaluate convergence or divergence in income growth and if it is related with R&D investments. After a brief introduction we evaluate the inequalities among regions using information about per capita GDP and per capita R&D investment. It follows the convergence analysis and conclusions. To study the spatial convergence (approximation) of per capita income (GDPpc) and R&D investments in the regions of Portugal, we use a standard methodology of spatial econometrics. We compared the values of each geographical unit with the values calculated to the neighboring geographic units, in the first and last year of the period under review. We conclude that regions with higher GDPpc are not the same with the highest concentration of R&D investments, with the exception of the northern coastline. The R&D investments are geographically linked to the network of higher education institutions, especially in the interior regions of the country. The northern regions reveal more dynamic in terms of R&D, which apparently is not felt in the population's standard of living measured by GDPpc. Our challenge for the future of this work is to understand and to explain this data evidence.

Suggested Citation

  • Gertrudes Guerreiro & António Guerreiro, 2015. "Regional Convergence and R&D Investment: Applied investigation in Portugal," ERSA conference papers ersa15p463, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa15p463
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    References listed on IDEAS

    as
    1. Funke, Michael & Niebuhr, Annekatrin, 2000. "Spatial R&D spillovers and economic growth: Evidence from West Germany," HWWA Discussion Papers 98, Hamburg Institute of International Economics (HWWA).
    2. ByungWoo Kim, 2012. "Growth regression revisited: R&D promotes convergence?," Applied Economics, Taylor & Francis Journals, vol. 44(11), pages 1347-1362, April.
    3. Guerreiro, Gertrudes & Caleiro, António, 2014. "A convergência espacial do conhecimento em Portugal [The spatial convergence of knowledge in Portugal]," MPRA Paper 56176, University Library of Munich, Germany.
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    Cited by:

    1. Zizi Goschin & Steliana Sandu & Georgiana Gloria Goschin, 2016. "The impact of economic crisis on R&D convergence in Romania," ERSA conference papers ersa16p499, European Regional Science Association.
    2. Mindaugas Butkus & Diana Cibulskiene & Alma Maciulyte-Sniukiene & Kristina Matuzeviciute, 2018. "What Is the Evolution of Convergence in the EU? Decomposing EU Disparities up to NUTS 3 Level," Sustainability, MDPI, vol. 10(5), pages 1-37, May.

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    More about this item

    Keywords

    R&D Investment; Income Distribution; Regional Inequality; Regional Convergence;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • 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)

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