The Role of the EU Internal Market in the Adoption of Innovation

Fabio Manca, Rosina Moreno () and Jordi Suriñach

European Planning Studies, 2011, vol. 19, issue 6, 1091-1116

Abstract: This paper aims at analysing the impact of the regulation of the European Union (EU) internal market (IM) in the adoption of innovation. After constructing an indicator of innovation adoption based on the information provided by the Community Innovation Survey, in the first stage, we define the impact of some major IM regulations on cooperation, competition and trade across EU countries. The results of this first stage show how different IM regulations are important determinants of these three macroeconomic variables that we consider afterwards having an impact on innovation adoption. Hence, in the second stage we address whether innovation adoption rates significantly depend on the degree of cooperation, trade and competition as well as some control variables such as national legal structures and IPR regulations. Estimations have been computed using an econometric model whose dependent variable is total innovation adoption as well as its possible disaggregation into sub-categories. Results show that cooperation and its main IM determinants positively impact innovation adoption, leaving trade and competition as apparently minor channels of innovation adoption (and especially depending on the type of innovation adoption under examination).

Date: 2011
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DOI: 10.1080/09654313.2011.568821

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