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Econometric modelling of the regional knowledge production function in Europe

Sylvie Charlot (), Riccardo Crescenzi and Antonio Musolesi ()

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: By adopting a semiparametric approach, the ‘traditional’ regional knowledge production function is developed in three complementary directions. First, the model is augmented with region-specific time trends to account for endogeneity due to selection on unobservables. Second, the nonparametric part of the model relaxes the standard assumptions of linearity and additivity regarding the effect of R&D and human capital. Finally, the assumption of homogeneity in the effects of R&D and human capital is also relaxed by explicitly accounting for the differences between developed and lagging regions. The analysis of the genesis of innovation in the regions of the European Union unveils nonlinearities, threshold effects, complex interactions and shadow

Keywords: innovation; Europe; R&D; regional knowledge production function; semiparametric models; endogenous selection; random growth model (search for similar items in EconPapers)
JEL-codes: C14 C23 O32 R11 (search for similar items in EconPapers)
Date: 2015-11-01
New Economics Papers: this item is included in nep-cse, nep-geo, nep-ino, nep-knm, nep-sbm, nep-tid and nep-ure
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Published in Journal of Economic Geography, 1, November, 2015, 15(6), pp. 1227-1259. ISSN: 1468-2702

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