What drives total factor productivity growth? An examination of spillover effects

Matthias Siller, Thomas Schatzer, Janette Walde and Gottfried Tappeiner

Regional Studies, 2021, vol. 55, issue 6, 1129-1139

Abstract: This study analyses the role of regional characteristics, particularly regional knowledge spillovers, as drivers of total factor productivity (TFP) growth in 190 European regions. A new modelling approach for knowledge spillovers that is different from the commonly used neighbourhood matrices is proposed. Therefore, by estimating the impact of drivers on TFP growth, findings reveal a strong direct effect of TFP spillovers alongside factors such as research and development (R&D) spending, cultural values or perceived quality of governance. However, the results also show that the openness of regional society to progress is a prerequisite for the effective use of existing knowledge.

Date: 2021
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DOI: 10.1080/00343404.2020.1869199

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