The impact of industrial specialisation and diversity on innovation

Lydia Greunz

Brussels Economic Review, 2003, vol. 46, issue 3, 11-36

Abstract: This paper aims at contributing to a better understanding of whether and to what extent the organisation of industrial activity influences innovative output in investigating the European regional landscape. After a review of the related literature we build a model based on firstly, different kinds of diversity measures aiming at capturing potential Jacobs externalities, secondly a production specialisation measure aiming at capturing MAR externalities and thirdly region and sector specific variables. The model is tested onto an extended sample of 153 European regions and 16 manufacturing sectors and suggests that both kinds of externalities generate knowledge spillovers and positively influence innovation. However, the influence of Jacobs externalities is more important in the context of "high density" regions as well as for sectors with high technological intensities

Keywords: intra-regional knowledge spillovers; spécialisation; diversity; innovation (search for similar items in EconPapers)
JEL-codes: O18 O31 R00 (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (4)

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