Technological Complexity and Economic Growth of Regions

Michael Fritsch () and Michael Wyrwich

No 2050, Papers in Evolutionary Economic Geography (PEEG) from Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography

Abstract: We investigate how initial conditions that existed in East Germany at the end of the socialist regime impact regional development during the turbulent shock transition to a market economic system. Our investigation spans a period of almost 30 years. Both the self-employment rate (an indication of the existence of a pre-socialist entrepreneurial tradition) and the share of the workforce with a tertiary degree have a strong positive effect on regional development. We conclude that knowledge and a tradition of entrepreneurship have long-run positive effects on development in regions that face disruptive shocks. Entrepreneurship and knowledge play a less important role for development across West German regions, where no significant shocks occurred.

Keywords: Entrepreneurship; knowledge; economic development; history; transformation; East Germany (search for similar items in EconPapers)
JEL-codes: L26 N93 N94 R11 (search for similar items in EconPapers)
Date: 2020-10, Revised 2020-10
New Economics Papers: this item is included in nep-cse, nep-eur, nep-his, nep-ino, nep-knm, nep-sbm and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:egu:wpaper:2050

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