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What determines the efficiency of regional innovation systems?

Michael Fritsch and Viktor Slavtchev

No 2007-006, Jena Economics Research Papers from Friedrich-Schiller-University Jena

Abstract: We assess the efficiency of regional innovation systems (RIS) in Germany by means of a knowledge production function. This function relates private sector research and development (R&D) activity in a region to the number of inventions that have been registered by residents of that region. Different measures and estimation approaches lead to rather similar assessments. We find that both spillovers within the private sector as well as from universities and other public research institutions have a positive effect on the efficiency of private sector R&D in the respective region. It is not the mere presence and size of public research institutions, but rather the intensity of interactions between private and public sector R&D that leads to high RIS efficiency. We find that relationship between the diversity of a regions’ industry structure and the efficiency of its innovation system is inversely u-shaped. Regions dominated by large establishments tend to be less efficient than regions with a lower average establishment size.

Keywords: Knowledge; innovation; technical efficiency; spillovers; patents; regional analysis (search for similar items in EconPapers)
JEL-codes: O18 O31 R12 (search for similar items in EconPapers)
Date: 2007-04-20
New Economics Papers: this item is included in nep-eff, nep-geo, nep-ino, nep-ipr, nep-pr~ and nep-knm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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