Do Clusters Generate Greater Innovation and Growth? An analysis of European Regions

Andrés Rodríguez-Pose and Fabrice Comptour
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Fabrice Comptour: European Commission

No 21, Bruges European Economic Research Papers from European Economic Studies Department, College of Europe

Abstract: The analysis of clusters has attracted considerable interest over the last few decades. The articulation of clusters into complex networks and systems of innovation -- generally known as regional innovation systems -- has, in particular, been associated with the delivery of greater innovation and growth. However, despite the growing economic and policy relevance of clusters, little systematic research has been conducted into their association with other factors promoting innovation and economic growth. This article addresses this issue by looking at the relationship between innovation and economic growth in 152 regions of Europe during the period between 1995 and 2006. Using an econometric model with a static and a dynamic dimension, the results of the analysis highlight that: a) regional growth through innovation in Europe is fundamentally connected to the presence of an adequate socioeconomic environment and, in particular, to the existence of a well-trained and educated pool of workers; b) the presence of clusters matters for regional growth, but only in combination with a good ‘social filter’, and this association wanes in time; c) more traditional R&D variables have a weak initial connection to economic development, but this connection increases over time and, is, once again, contingent on the existence of adequate socioeconomic conditions.

Keywords: clusters; economic growth; European Union; innovation; regional innovation systems. (search for similar items in EconPapers)
JEL-codes: O14 O31 O32 O33 O40 O52 R11 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2011-10
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Citations: View citations in EconPapers (2)

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Working Paper: Do clusters generate greater innovation and growth? An analysis of European regions (2010)
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