Productivity Gaps Among European Regions

Claudio Cozza, Raquel Ortega-Argiles, Mariacristina Piva and Rui Baptista ()

Chapter Chapter 12 in Technology Transfer in a Global Economy, 2012, pp 205-232 from Springer

Abstract: Abstract How is the R&D-productivity link affected by the environment where firms locate? Are companies located with their registered offices in more R&D favorable environments better able to translate their R&D knowledge into productivity gains? Our paper tries to answer these questions analyzing - in the European context - if R&D performing companies cluster themselves in “higher-order R&D regions”, as the Economic Geography theories postulate, inducing a polarisation in terms of labour productivity in comparison with firms located in “lower-order R&D regions”. The proposed microeconometric estimates are based on a unique longitudinal database of publicly-traded companies belonging to manufacturing and service sectors. The final unbalanced sample comprises 626 European companies for a total of 3,431observations, covering the period 1990-2008. Results show that European “higher-order R&D regions” not only invest more in R&D, but also achieve more in terms of productivity gains from their own research activities. Results also show that in the case of “lower-order R&D regions”, physical capital stock is still playing a dominant role.

Keywords: Gross Domestic Product; Labour Productivity; Total Factor Productivity; Physical Capital; Firm Productivity (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:spr:inschp:978-1-4614-6102-9_12

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DOI: 10.1007/978-1-4614-6102-9_12

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