Subsidiary Roles, Vertical Linkages and Economic Development: Lessons from Transition Economies
Björn Jindra, Axèle Giroud, J. Scott-Kennel
Journal of World Business,
2009
Abstract
Vertical supply chain linkages between foreign subsidiaries and domestic ?rms are important mechanisms for knowledge spillovers, contributing to the economic development of host economies. This paper argues that subsidiary roles and technological competences affect the extent of vertical linkages as such as well as their potential for technological spillovers. Using survey evidence from 424 foreign subsidiaries based in transition economies, we tested for the effect of subsidiaries’ autonomy, initiative, technological capability, internal and external technological embeddedness on the extent and intensity of forward and backward vertical linkages. The evidence supports our main argument that the potential of technology diffusion via vertical linkages depends on the nature of subsidiary roles. We discuss the implications for transition as well as other developing countries.
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Spatially Concentrated Industries as Innovation Driver? – Empirical Evidence from East Germany
Christoph Hornych, Michael Schwartz
Wirtschaft im Wandel,
No. 9,
2008
Abstract
A positive relation between the spatial concentration of sectors and their capacity of innovation is frequently assumed in regional science as well as in regional development policy. Therefore, with the support of sectoral agglomeration, effects on the regional technological performance are expected. However, previous empirical work is inconsistent in supporting this interdependency.
This study aims to examine the effects of sectoral agglomeration on innovative activities in East-German regions. For this purpose, spatially concentrated industries are identified and included in the estimation of regional ‘knowledge-production-functions’. Contrary to expectations, the spatial concentration seems to inhibit the amount of patent-activities of the sector in the specific region. In contrast, positive effects are generated from research facilities. Moreover, we find evidence for intersectoral spillovers.
The results show that for innovative activities, urbanization effects have a higher relevance as localization effects. So far, spatially concentrated industries are not an innovation driver in East Germany.
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How Does Industry Specialization Affect the Efficiency of Regional Innovation Systems?
Michael Fritsch, Viktor Slavtchev
Jena Economic Research Papers, Nr. 2008-058,
No. 58,
2008
Abstract
This study analyzes the relationship between the specialization of a region in certain industries and the efficiency of the region in generating new knowledge. The efficiency measure is constructed by relating regional R&D input and output. An inversely u-shaped relationship is found between regional specialization and R&D efficiency, indicating the presence of externalities of both Marshall and Jacobs’ type. Further factors influencing efficiency are spillovers within the private sector as well as from public research institutions. The impact of both the specialization and the additional factors is, however, different for regions at different efficiency levels.
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What Determines the Efficiency of Regional Innovation Systems?
Michael Fritsch, Viktor Slavtchev
Jena Economic Research Papers, Nr. 2007-006,
No. 6,
2007
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.
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Universities and Innovation in Space
Michael Fritsch, Viktor Slavtchev
Industry and Innovation,
No. 2,
2007
Abstract
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. We also find the effects of universities to be concentrated in space. Obviously, the geographical proximity to particular knowledge sources is important for regional innovative activities.
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Universities and Innovation in Space
Michael Fritsch, Viktor Slavtchev
Freiberg Working Papers, Nr. 15-2006,
No. 15,
2006
Abstract
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.
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Measuring the Efficiency of Regional Innovation Systems – An Empirical Assessment
Michael Fritsch, Viktor Slavtchev
Freiberg Working Papers, Nr. 08-2006,
No. 8,
2006
Abstract
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.
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The Role of Regional Knowledge Sources for Innovation – An Empirical Assessment
Michael Fritsch, Viktor Slavtchev
Freiberg Working Papers, Nr. 15-2005,
No. 15,
2005
Abstract
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.
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