Agglomeration and Technological Specialization

Basheer Kalash

No 2022-04, GREDEG Working Papers from Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France

Abstract: Notable attention has been given to the relationship between agglomeration and innovation. However, there is a lack of evidence of how agglomeration affects the type of innovation produced. This study aims to causally assess the impact of a change in agglomeration economies, via transportation improvements, on regional technological specialization. It investigates this relationship using the inauguration of the Öresund Bridge between Sweden and Denmark in 2000 as a quasi-experiment for a difference-in-difference approach. It considers the Öresund area, which consists of Copenhagen and the Swedish Skåne, as the treated regions and the other regions in Denmark and Sweden as a control group. The International Patent Classification (IPC) codes of European Patent Office (EPO) applications are employed to define technology classes for 30 NUTS-3 regions in Sweden and Denmark from 1988 to 2011. The results show that the opening of the Öresund bridge led to an increase in Skåne's highly cited patent technology classes, but no significant change in the specialization of Copenhagen. The results suggest that changes in regions' specializations are not only dependent on the quality of patent technology classes but are also region-specific.

Keywords: Agglomeration; technological specialization; Öresund; transportation infrastructure; innovation (search for similar items in EconPapers)
JEL-codes: O31 O33 R11 (search for similar items in EconPapers)
Pages: 64 pages
Date: 2022-01
New Economics Papers: this item is included in nep-eur, nep-geo, nep-ino, nep-sbm, nep-tid and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:gre:wpaper:2022-04

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