Interplay between regional and industrial aspects in the R&D–productivity link: evidence from Europe

Research output: Contribution to journalArticlepeer-review

Authors

Colleges, School and Institutes

External organisations

  • London School of Economics and Political Science, The (LSE)
  • Servizio Innovazione e Sistemi Complessi
  • Università Cattolica del Sacro Cuore

Abstract

Interplay between regional and industrial aspects in the R&D–productivity link: evidence from Europe. Regional Studies. The paper tests the effect of the interplay between regional and sectoral dimensions in the firm-level research and development (R&D)–productivity link. Using a longitudinal database of innovative publicly traded European companies between 1991 and 2008, the following main results arise. First, the elasticity of value added with respect to R&D is larger in regions characterized by a higher innovation performance (knowledge hubs versus industrial zones). Second, in knowledge hubs, industry affiliation mediates the gains from R&D: high-tech manufacturing firms profit more from R&D than low-tech ones. This evidence suggests that an innovative regional environment increases the capacity to translate R&D investments into productivity for European high-tech industries. This virtuous circle is not at work in services and in low-tech manufacturing industries.

Details

Original languageEnglish
Pages (from-to)659-672
Number of pages14
JournalRegional Studies
Volume52
Issue number5
Early online date22 Jun 2017
Publication statusPublished - 4 May 2018

Keywords

  • European Union, productivity, regional differences, research and development (R&D), sectoral disparities