Regional Dynamics of Innovation Investigating the Co-Evolution of Patents, R&D, and Employment

Matthias Bürger (), Tom Brökel and Alex Coad ()
Additional contact information
Matthias Bürger: Friedrich-Schiller-University Jena, RTG 1411 - The Economics of Innovative Change
Tom Brökel: Utrecht University, Urban and Regional Research Centre Utrecht (URU)
Authors registered in the RePEc Author Service: Tom Broekel ()

No 2009-046, Jena Economics Research Papers from Friedrich-Schiller-University Jena

Abstract: We investigate the lead-lag relationship between growth of patent applications, growth of R&D, and growth of total sectoral employment for 270 German labour market regions over the period 1999-2005. Our unique panel dataset includes information on four two-digit industries, namely Chemistry, Transport equipment, Medical & Optical Equipment as well as Electrics & Electronics. The results obtained from a vector autoregression model show that an increased innovative activity is associated with subsequent growth of employment in the Medical & Optical Equipment industry as well as in the Electrics & Electronics sector. With respect to the latter growth of patent applications is also associated with subsequent growth of R&D employees indicating either a "success-breeds-success" story or benefits due to agglomeration economies at the level of the region. However we do not find those effects for the other industries due to their idiosyncratic innovation and patenting behaviour.

Keywords: Innovation; Agglomeration; Employment (search for similar items in EconPapers)
JEL-codes: O18 R11 (search for similar items in EconPapers)
Date: 2009-06-25
New Economics Papers: this item is included in nep-cse, nep-ino, nep-ipr, nep-pr~, nep-knm, nep-mic, nep-sbm and nep-tid
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Related works:
Working Paper: Regional Dynamics of Innovation - Investigating the Co-Evolution of Patents, R&D, and Employment (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:jrp:jrpwrp:2009-046

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