What Determines the Efficiency of Regional Innovation Systems?
Jena Economic Research Papers, Nr. 2007-006,
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.
Universities and Innovation in Space
Freiberg Working Papers, Nr. 15-2006,
We investigate the role of universities as a knowledge source for regional innovation processes. The contribution of universities is tested on the level of German NUTS-3 regions (Kreise) by using a variety of indicators. We find that the intensity and quality of the research conducted by the universities have a significant effect on regional innovative output while pure size is unimportant. Therefore, a policy that wants to promote regional innovation processes by building up universities should place substantial emphasis on the intensity and quality of the research conducted there.
Measuring the Efficiency of Regional Innovation Systems – An Empirical Assessment
Freiberg Working Papers, Nr. 08-2006,
We measure 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) in a region to the number of inventions that have been registered by residents of that region. Two approaches are followed. First, it is assumed that differences in the productivity of private sector R&D between regions affect the slope of the KPF, which represents the marginal productivity of R&D input. The second approach assesses regional differences within the framework of a stochastic frontier knowledge production function. This approach mainly reveals differences with regard to the intercept of the knowledge production function and, therefore, with regard to the average productivity. We compare the results of both approaches and discuss a number of critical issues such as the properties of the distribution of efficiencies, the appropriate size of RIS, and how to deal with the issue of spatial autocorrelation.
The Role of Regional Knowledge Sources for Innovation – An Empirical Assessment
Freiberg Working Papers, Nr. 15-2005,
We investigate the contribution of different inputs, particularly different knowledge sources, on regional patenting output in the framework of a knowledge production function. The knowledge sources included are R&D employment, size of public research institutions by field of research (budget), amount of university external research funds from private firms, public departments, German Science Foundation (DFG), and from other sources. The contribution of these knowledge sources is tested systematically on the level of German districts (Kreise) by including the respective information for the particular region and for adjacent regions. One main finding is that the quality of the university research makes some contribution to regional innovation while the mere size of the universities is unimportant. Differences in the effect on innovative output can be found according to academic disciplines and type of university.
A Study of the Competitiveness of Regions based on a Cluster Analysis: The Example of East Germany
IWH Discussion Papers,
This paper examines whether some East German regions have already achieved the same economic capability as the regions in West Germany, so that they are on a competitive basis with the West German regions and are able to reach the same economic level in the long run. If this is not the case, it is important to know more about the reasons for the economic weakness of the East German regions twelve years after unification.
The study is based on a cluster analysis. Criteria for the cluster formation are several economic indicators, which provide information about the economic capability of regions. The choice of the indicators is based on a review of results of the theoretical and empirical literature on the new growth theory and new economic geography.
The results show that most of the East German regions have not yet reached the economic capability and competitiveness of their West German counterparts so that they - from the viewpoint of the new growth theory and the new economic geography - are not in the position to reach the same economic level. According to these theories economic disadvantages are most notably the consequences of less technical progress, a lack of entrepreneurship and fewer business concentration. Under these points it is especially noteworthy that young well educated people leave these East German regions so that human capital might will turn into a bottle-neck in the near future. Only a few regions in East Germany - those with important agglomerations - are comparable to West German regions that are characterised by average capability and competitiveness, but not to those with above average economic capability and competitiveness. Even those more advanced East German regions still suffer from a slower technical progress.
There are important policy implications based on these results: regional policy in East Germany was not able to assist raising all regions to a sufficient level of competitiveness. It may be more effective to concentrate the regional policy efforts on a selection of important agglomerations. This has also strong implications for the EU regional policy assuming that the accession countries will have similar problems in catching up to the economic level of the EU as have the East German regions.
A glimpse on sectoral convergence of productivity levels
IWH Discussion Papers,
This paper examines the presence of sectoral convergence of labor productivity between 14 OECD countries. Using the OECD International Sectoral Data Base (ISDB), the paper looks at the developments within 12 distinct sectors during the period 1970-1995. The change of the coefficients of variance suggests that there is strong sectoral convergence within most service sectors while the evidence of convergence for Manufacturing as well as for Communication is rather weak. These findings are in line with most studies undertaken on this subject so far. It is concluded that economic theories at hand to explain growth and convergence (or divergence respectively) are of different importance for the sectors concerned. While models of the New Growth Theory seemed to be useful to explain growth mechanisms within Manufacturing and Communication, traditional models seemed to apply to most other sectors.