Knowledge spillovers and economic performance of firms located in depressed areas: does geographical proximity matter?

Liliana Araújo (), Sandra T. Silva () and Aurora Teixeira ()
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Liliana Araújo: Faculdade de Economia, Universidade do Porto
Sandra T. Silva: CEF.UP, Faculdade de Economia, Universidade do Porto

FEP Working Papers from Universidade do Porto, Faculdade de Economia do Porto

Abstract: Extensive literature on the contribution of knowledge spillovers to growth and development at the regional level exists but these studies mainly features regions characterised by a high level of economic development. This paper assesses the importance of knowledge spillovers for firms located in relatively small, peripheral and economically depressed areas. Based on both primary (direct surveys to 257 firms) and secondary data, we concluded that the more relevant knowledge spillovers for firms located in a depressed region of northern Portugal (Vale do Ave) are inter-regional and international. This suggests that the contacts established with sources of knowledge from outside the region under analysis and abroad are crucial for the performance of firms. Despite the innovative intra-industry environment impacts positively on the economic performance of firms, our results convey that in such peripheral and depressed region geographical proximity is not critical for the firms’ economic performance.

Keywords: Depressed areas; Evolutionary Economic Geography; Knowledge Spillovers, Innovation. (search for similar items in EconPapers)
JEL-codes: B52 D80 O3 R11 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2013-03
New Economics Papers: this item is included in nep-cse, nep-geo, nep-ino, nep-knm, nep-sbm and nep-ure
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:por:fepwps:488

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