From Average to the Frontier: A Nonparametric Performance Approach for Analyzing Externalities and Regions’ Innovativeness

Tom Broekel ()

No 804, Papers in Evolutionary Economic Geography (PEEG) from Utrecht University, Section of Economic Geography

Abstract: Although a rich literature has emerged analyzing the impact of localization, urbanization, and Jacobs externalities on regional innovativeness, the findings are still contradictory. Traditional studies differ mainly in the employed data but rely on similar empirical approaches. This paper argues in favor of using in this context production frontier approaches instead of the commonly employed production function approaches. In addition, a nonparametric frontier approach is used to empirically examine the influence of the externalities on regions’ innovativeness. For four different industries positive effect of localization and urbanization externalities are found. In contrast, with the exception of the transport equipment industry, Jacobs externalities seem to be of minor importance.

Keywords: regional innovation performance; nonparametric frontier analysis; German electrics; electronics industry (search for similar items in EconPapers)
JEL-codes: R12 O18 O31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eff, nep-geo, nep-ino and nep-ure
Date: 2008-03, Revised 2008-05
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Persistent link: http://EconPapers.repec.org/RePEc:egu:wpaper:0804

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