Modeling regional innovativeness and innovation

Amnon Frenkel and Daniel Shefer
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Amnon Frenkel: Center for Urban and Regional Studies, Technion - Israel Institute of Technology, Haifa, Israel
Daniel Shefer: Center for Urban and Regional Studies, Technion - Israel Institute of Technology, Haifa, Israel

The Annals of Regional Science, 1996, vol. 30, issue 1, 54 pages

Abstract: Advanced means of communication are necessary ingredients in the process of the dissemination of information and knowledge over space. Thus the spatial diffusion of innovation is contingent upon rapid, accurate transmission of knowledge and the ability to interact frequently and efficiently among different locations. This paper presents an extended empirical model for evaluating innovativeness and the innovation potential of various regions. The extended model is based on two basic models: the LOGIT model, a behavioral logistic model that is used to describe the diffusion process, and Bayesian statistical decision theory. A simplified example with synthetic data is presented to demonstrate the three steps involved in evaluating the probabilities of technology innovation in various regions with the extended model. Finally, the example is used to present possible way of employing the model to evaluate the effectiveness of public policy to attract firms to different regions.

Date: 1996
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