Industry Concentration and Regional Innovative Performance – Empirical Evidence for Eastern Germany
Christoph Hornych, Michael Schwartz
Post-Communist Economies,
2009
Abstract
Regarding technological innovativeness, the transformed economy of the former German Democratic Republic (GDR) clearly lags behind the western part of the country. To face this weakness a broad mixture of policy measures was carried out in recent years. Particular attention is drawn to the development of industry concentrations and economic ‘clusters’. However, little is known about the effectiveness of these policy measures regarding how industry concentrations in fact promote innovative performance in Eastern Germany. The present study tries to fill this gap by analysing the relationship between industry concentration in Eastern Germany and regional innovative performance. Our empirical analysis is based upon the number of patent applications of 22 manufacturing industries in 22 Eastern German planning regions. The estimated regression models indicate an inverted-U relationship between the degree of industry concentration and innovative performance. An exceedingly high degree of industry concentration in one region hampers regional innovative output. We discuss policy implications of our findings and give recommendations for future refinement of ‘cluster’-supporting policy schemes in Eastern Germany.
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Industry Concentration and Regional Innovative Performance – Empirical Evidence for Eastern Germany
Christoph Hornych, Michael Schwartz
IWH Discussion Papers,
Nr. 8,
2009
Abstract
Regarding technological innovativeness, the transformed economy of the former German Democratic Republic (GDR) clearly lags behind the Western part of the country. To face this weakness, a broad mixture of policy measures was carried out in recent years. Particular attention is drawn to the development of industry concentrations and economic ‘clusters’. However, little is known about the effectiveness of these policy measures regarding how industry concentrations in fact promote innovative performance in Eastern Germany. The present study tries to fill this gap by analyzing the relationship between industry concentration in Eastern Germany and regional innovative performance. Our empirical analysis is based upon the number of patent applications of 22 manufacturing industries in 22 Eastern German planning regions. The estimated regression models indicate an inverted U-shaped relationship between the degree of industry concentration and innovative performance. An exceedingly high degree of industry concentration in one region hampers regional innovative output. We discuss policy implications of our findings and give recommendations for future refinement of ‘cluster’-supporting policy schemes in Eastern Germany.
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Trade's Impact on the Labor Share: Evidence from German and Italian Regions
Claudia M. Buch
IAW Discussion Paper No. 46,
2008
Abstract
Has the labor share declined? And what is the impact of international trade? These
questions are not only relevant in an international context they also matter for
understanding the regional distribution of incomes in a given country. In this
paper, we study two regions with trade exposures that differ from the rest of the
country, and which display distinct changes in the labor share. East German and
Southern Italian regions have a degree of international openness which is below
the countries’ averages. At the same time, there has been a more pronounced
decline in the labor share in East Germany than in West Germany. In Southern
Italy, the labor share has increased in recent years. We show that increased trade
openness is not the main culprit behind changing labor shares.
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Economic convergence across German regions in light of empirical findings
Udo Ludwig, John B. Hall
Cambridge Journal of Economics,
2006
Abstract
This paper challenges the convergence hypothesis advanced by R. Barro and X. Sala-i-Martin as it is applied to explain the forces behind, patterns exhibited by and time line for German regional convergence. Exposed in some detail are the spurious neoclassical and marginalist assumptions, purporting that 'automatic' forces would indeed bring about a convergence in per capita incomes between two German regions. A trend exhibiting slow growth in per capita income in Germany's eastern region renders a Beta coefficient so low as to rule out convergence altogether. In addition, capital fails to move between German regions in the pattern assumed by the convergence hypothesis.
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Vertical and horizontal patterns of intra-industry trade between EU and candidate countries
Hubert Gabrisch
IWH-Sonderhefte,
Nr. 2,
2003
Abstract
Trade between the European Union (EU) and the Transition Economies (TE) is increasingly characterised by intra-industry trade. The decomposition of intra-industry trade into horizontal and vertical shares reveals predominantly vertical structures with decisively more quality advantages for the EU and less quality advantages for TE countries whenever trade has been liberalised. Empirical research on factors determining this structure in a EU-TE framework lags behind theoretical and empirical research on horizontal and vertical trade in other regions of the world. The main objective of this paper is therefore to contribute to the ongoing debate on EU-TE trade structures by offering an explanation of vertical trade. We utilise a cross-country approach in which relative wage differences, country size and income distribution play a leading role. We find first that relative differences in wages (per capita income) and country size explain intraindustry trade when trade is vertical and completely liberalised, and second that crosscountry differences in income distribution play no explanatory role. We conclude that EU firms have been able to increase their product quality and to shift low-quality segments to TE countries. This may suggest a product-quality cycle prevalent in EU-TE trade.
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Ist eine spezifische FuE-Förderung für die neuen Länder notwendig?
Ralf Müller
Wirtschaft im Wandel,
Nr. 14,
1998
Abstract
Es herrscht vielfach die Auffassung vor, in den neuen Ländern bestehe eine im Vergleich zu den alten Ländern geringe und für eine zügige Anpassung der Wettbewerbsfähigkeit nicht ausreichende Aktivität der Unternehmen in Forschung und Entwicklung (FuE). Hierauf basieren Forderungen, FuE in den neuen Ländern stärker als bisher zu fördern. Bei disaggregierter Betrachtung für unterschiedliche Sektoren und Unternehmensgrößen zeigt sich in den neuen Ländern allerdings eine FuE-Intensität, die eher höher ist als in vergleichbaren westdeutschen Unternehmen.
Grundsätzlich können verschiedene Marktbesonderheiten eine FuE-Förderung rechtfertigen. Dazu zählen externe Effekte von Innovationen sowie FuE-Größenvorteile und unvollkommene Kreditmärkte, die den Eintritt in FuE-intensive Märkte behindern. Dies begründet aber nicht, warum kleine und mittlere sowie allgemein junge Unternehmen der alten Länder weniger Förderung erhalten sollten als entsprechende ostdeutsche Unternehmen. Begründet werden kann eine spezifische FuE-Förderung für die neuen Länder jedoch mit dem Fehlen von Netzwerken innovativer Unternehmen. Hieraus entsteht ein Standortnachteil für innovierende ostdeutsche Unternehmen, da es an Kooperationsmöglichkeiten in ihrer Region mangelt. Dies behindert nicht nur die Neugründung innovativer Unternehmen, sondern auch die Ansiedlung solcher aus Westdeutschland und dem Ausland.
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Are Rural Firms Left Behind? Firm Location and Perceived Job Attractiveness of High-skilled Workers
Matthias Brachert, Sabrina Jeworrek
Cambridge Journal of Regions, Economy and Society,
2099
Abstract
We conduct a discrete choice experiment to investigate how the location of a firm in a rural or urban region affects the perceived job attractiveness for university students and graduates and, therewith, contributes to the rural–urban divide. We characterize the attractiveness of a location based on several dimensions (social life, public infrastructure and connectivity) and vary job design and contractual characteristics of the job. We find that job offers from companies in rural areas are generally considered less attractive, regardless of the attractiveness of the region. The negative perception is particularly pronounced among persons of urban origin and singles. In contrast, for individuals with partners and kids this preference is less pronounced. High-skilled individuals who originate from rural areas have no specific regional preference at all.
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