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From Average to the Frontier: A Nonparametric Performance Approach for Analyzing Externalities and Regions’ Innovativeness

Tom Broekel

No 804, Papers in Evolutionary Economic Geography (PEEG) from Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography

Abstract: Although a rich literature has emerged analyzing the impact of localization, urbanization, and Jacobs externalities on regional innovativeness, the findings are still contradictory. Traditional studies differ mainly in the employed data but rely on similar empirical approaches. This paper argues in favor of using in this context production frontier approaches instead of the commonly employed production function approaches. In addition, a nonparametric frontier approach is used to empirically examine the influence of the externalities on regions’ innovativeness. For four different industries positive effect of localization and urbanization externalities are found. In contrast, with the exception of the transport equipment industry, Jacobs externalities seem to be of minor importance.

Keywords: regional innovation performance; nonparametric frontier analysis; German electrics; electronics industry (search for similar items in EconPapers)
JEL-codes: O18 O31 R12 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2008-03, Revised 2008-05
New Economics Papers: this item is included in nep-eff, nep-geo, nep-ino and nep-ure
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Citations: View citations in EconPapers (3)

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http://econ.geo.uu.nl/peeg/peeg0804b.pdf Version May 2008 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:egu:wpaper:0804

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