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Measuring the efficiency of regional innovation systems: an empirical assessment

  • Fritsch, Michael
  • Slavtchev, Viktor

We measure the efficiency of regional innovation systems (RIS) in Germany by means of a knowledge production function. This function relates private sector Research and Development (R&D) in a region to the number of inventions that have been registered by residents of that region. Two approaches are followed. First, it is assumed that differences in the productivity of private sector R&D between regions affect the slope of the KPF, which represents the marginal productivity of R&D input. The second approach assesses regional differences within the framework of a stochastic frontier knowledge production function. This approach mainly reveals differences with regard to the intercept of the knowledge production function and, therefore, with regard to the average productivity. We compare the results of both approaches and discuss a number of critical issues such as the properties of the distribution of efficiencies, the appropriate size of RIS, and how to deal with the issue of spatial autocorrelation.

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Paper provided by TU Bergakademie Freiberg, Faculty of Economics and Business Administration in its series Freiberg Working Papers with number 2006,08.

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Date of creation: 2006
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Handle: RePEc:zbw:tufwps:200608
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  1. RM. Serrano & R. Paci & S. Usai, 2004. "Geographical and sectoral clusters of innovation in Europe," Working Paper CRENoS 200415, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  2. Michael Fritsch & Viktor Slavtchev, 2005. "The Role of Regional Knowledge for Innovation," ERSA conference papers ersa05p623, European Regional Science Association.
  3. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
  4. Anselin, Luc, 1990. "Some robust approaches to testing and estimation in spatial econometrics," Regional Science and Urban Economics, Elsevier, vol. 20(2), pages 141-163, September.
  5. Manfred M. Fischer & Attila Varga, 2003. "Spatial knowledge spillovers and university research: Evidence from Austria," The Annals of Regional Science, Springer, vol. 37(2), pages 303-322, 05.
  6. Zvi Griliches, 1979. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 92-116, Spring.
  7. Ronde, Patrick & Hussler, Caroline, 2005. "Innovation in regions: What does really matter?," Research Policy, Elsevier, vol. 34(8), pages 1150-1172, October.
  8. Acs, Zoltan J. & Anselin, Luc & Varga, Attila, 2002. "Patents and innovation counts as measures of regional production of new knowledge," Research Policy, Elsevier, vol. 31(7), pages 1069-1085, September.
  9. Michael Fritsch, 2004. "Cooperation and the efficiency of regional R&D activities," Cambridge Journal of Economics, Oxford University Press, vol. 28(6), pages 829-846, November.
  10. Michael Fritsch, 2000. "Interregional Differences in R&D Activities—An Empirical Investigation," European Planning Studies, Taylor & Francis Journals, vol. 8(4), pages 409-427, August.
  11. Griliches, Zvi, 1990. "Patent Statistics as Economic Indicators: A Survey," Journal of Economic Literature, American Economic Association, vol. 28(4), pages 1661-1707, December.
  12. Frans W.M. Boekema & Marius T.H. Meeus & Leon A.G. Oerlemans, 2001. "articles: Firm clustering and innovation: Determinants and effects," Papers in Regional Science, Springer, vol. 80(3), pages 337-356.
  13. Deyle, Hanno-G. & Grupp, Hariolf, 2005. "Commuters and the regional assignment of innovative activities: A methodological patent study of German districts," Research Policy, Elsevier, vol. 34(2), pages 221-234, March.
  14. Oerlemans, L.A.G. & Meeus, M.T.H. & Boekema, F.W.M., 2001. "Firm clustering and innovation," Other publications TiSEM c4398688-1710-449a-83e7-e, Tilburg University, School of Economics and Management.
  15. repec:fth:harver:1473 is not listed on IDEAS
  16. Baptista, Rui & Swann, Peter, 1998. "Do firms in clusters innovate more?," Research Policy, Elsevier, vol. 27(5), pages 525-540, September.
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