R&D, Spillovers, Innovation Systems and the Genesis of Regional Growth in Europe

The paper aims at understanding the balance between “endogenous†factors and “external†knowledge flows in the process of innovation and growth of EU regions. Research on the impact of innovation on regional economic performance in Europe has fundamentally followed three approaches: a) the analysis of the link between investment in R&D, patents, and economic growth; b) the examination of geographical diffusion of regional knowledge spillovers; and c) the study of the existence and efficiency of regional innovation systems. These complementary approaches have, however, rarely been combined. Important operational and methodological barriers have thwarted any potential cross-fertilization. In this paper, we try to fill this gap in the literature by combining in one model R&D, spillovers, and innovation systems approaches. A multiple regression analysis approach is conducted for all regions of the EU-25, including measures of R&D investment, proxies for socio-economic structure, for each region and in neighbouring regions. The empirical results highlight how the three above-mentioned factors interact with one another uncovering the importance not only of “endogenousâ€innovative efforts but also of local socio-economic conditions for the genesis and assimilation of innovation and its transformation it into economic growth across European regions. In addition, the quantitative analysis shows the importance of proximity for the transmission of economically productive knowledge.

Education and Income Inequality in the Regions of the European Union

The paper provides an empirical study of the determinants of income inequality across regions of the EU. Using the European Community Household Panel data set for 102 regions over the period 1995-2000, it analyses how microeconomic changes in human capital distribution affect income inequality. Human capital distribution is measured in terms of both human capital stock, as well as human capital inequality. Income and human capital inequalities are calculated by a generalised entropy index (Theil index). Different static and dynamic panel data analyses are conducted in order to reduce measurement error on inequalities and minimise potential problems of omitted-variable bias. The regression results suggest that, in the short term, human capital inequality is negatively associated to the average regional income and the average level of education of the population. The results also highlight that a highly unequal distribution of education level completed is associated to lower, rather than to higher inequality, highlighting the effectiveness of the European social system or, from a different perspective, the lack of responsiveness of EU labour market to differences in qualifications and skills. Additionally, high unemployment is associated with higher income inequality, while urbanisation has the opposite effect.

The countryside in urbanized Flanders: towards a flexible definition for a dynamic policy

The countryside, the rural area, the open space, … many definitions are used for rural Flanders. Everyone makes its own interpretation of the countryside, considering it as a place for living, working or recreating. The countryside is more than just a geographical area: it is an aggregate of physical, social, economic and cultural functions, strongly interrelated with each other. According to international and European definitions of rural areas there would be almost no rural area in Flanders. These international definitions are all developed to be used for analysis and policy within their specific context. They are not really applicable to Flanders because of the historical specificity of its spatial structure. Flanders is characterized by a giant urbanization pressure on its countryside while internationally rural depopulation is a point of interest. To date, for every single rural policy initiative – like the implementation of the European Rural Development Policy – Flanders used a specifically adapted definition, based on existing data or previously made delineations. To overcome this oversupply of definitions and delineations, the Flemish government funded a research project to obtain a clear and flexible definition of the Flemish countryside and a dynamic method to support Flemish rural policy aims. First, an analysis of the currently used definitions of the countryside in Flanders was made. It is clear that, depending on the perspective or the policy context, another definition of the countryside comes into view. The comparative study showed that, according to the used criteria, the area percentage of Flanders that is rural, varies between 9 and 93 per cent. Second, dynamic sets of criteria were developed, facilitating a flexible definition of the countryside, according to the policy aims concerned. This research part was focused on 6 policy themes, like ‘construction, maintenance and management of local (transport) infrastructures’ and ‘provision of (minimum) services (education, culture, health care, …)’. For each theme a dynamic set of criteria or indicators was constructed. These indicators make it possible to show where a policy theme manifests itself and/or where policy interventions are possible or needed. In this way every set of criteria makes up a new definition of rural Flanders. This method is dynamic; new data or insights can easily be incorporated and new criteria sets can be developed if other policy aims come into view. The developed method can contribute to a more region-oriented and theme-specific rural policy and funding mechanism

Informing Development of the UK Place-based R&D Strategy:Research England/UKRI and WMREDI expert evidence forum

The West Midlands Regional Economic Development Institute (WMREDI) at the University of Birmingham hosted a closed-forum for Research England (UKRI) to examine the evidence base for a place-based R&amp;D strategy.The following questions guided discussions: - What evidence is available (or is needed) to show that different kinds of regional impact result from different kinds of R&amp;D investments / interventions? - What should the research and innovation system – universities, businesses, research organisation and other intermediaries - do more of to support economic growth in their region? - How can we ensure different parts of the UK have the mix of interventions they need to enable R&amp;D-led growth? - What are the major critical dependencies for R&amp;D policy levers at the national and the local level? Is there evidence to show which different levers, incentives, mechanisms and critical dependencies make a difference to scale of impact and/or outcomes?- What does UKRI, government and local leadership need to do to ensure research and innovation can play a powerful role in levelling up the country?These reports provide a summary of this work. Contributors providing briefings incorporated into this paper: Professor Riccardo Crescenzi (LSE) Dr. Kieron Flanagan (Manchester) Professor Helen Lawton Smith (Birkbeck) Professor Maria Savona (Sussex) Dr. Elvira Uyarra (Manchester) Dr Anna Valero (LSE) Professor Slavo Radosevic (UCL)Other Discussants: Professor Paul Nightingale (Sussex) Professor Andres Rodriguez-Pose (LSE)Other academic participants: Professor Richard Harris (Durham) Professor Neil Lee (LSE) Professor Kevin Morgan (Cardiff) Raquel Ortega-Argilles (City-REDI, Birmingham) (Chantale Tippett (for Juan Mateos-Garcia -Nesta)) (Antonio Andreoni (IIPP))</div

Regional development at the borders of the European Union: introductory studies

Regions have very different economic performances (among themselves) compared to states, induced by a number of determinants, such as: geography, demography, degree of specialization, economic productivity, physical and human capital, infrastructure, capacity for innovation. In this context, some regions are taking greater advantage of the benefits and opportunities of globalization and interconnection, being better connected to global markets. Thus, there are significant differences in the global regional landscape, related to production capacity, comparative advantage, economic indicators (GDP, GDP / capita, annual growth rate), income level, employment rate, labour productivity, demographic characteristics, institutions, policies, resources. The paradigm in which these structures operate no longer focuses on achieving convergent or equal levels of development, but on identifying regional models that allow sustainable development for prosperous regions and provide opportunities, in the short and medium term, aimed at eliminating disparities persistent in less prosperous regions. For the latter category of areas, there has recently been a major concern in Central and Eastern Europe, driven by the need to find solutions to the new difficulties posed by the restructuring and reform processes experienced by the Member States that joined after 2004

The Politics of Transgenic Food: An Ethnographically Informed Analysis of the Ban on Genetically Modified Crops in Bolivia

This research investigates a country that has recently committed itself to replacing all genetically modified crops with non-altered crops. Limitations and benefits associated with allowing or banning transgenic technology are examined through interviews with farmers, agricultural researchers, agronomists, biologists and environmental advocates in three diverse communities in Bolivia. This research explores how these stakeholders experience and understand the recent national rejection of this agricultural technology. Controversy surrounding development and use of transgenic technology illustrates moral, political, social and economic conflicts, presents risks and creates complex societal decisions with the potential to impact ecological systems, diversity of life, health (both natural and human), poverty and wealth, global food security, economic gains, and the preservation of culture. The ways in which Bolivians understand and frame the ban on transgenic technology are complex, situational, and dependent on a variety of factors. Outlooks on the importance of economic development, social and spiritual development, efficiency of agricultural practices, protection of biodiversity, seed varieties and the environment, and perceived societal risks informed the positions of Bolivian stakeholders

Editorial statement: The first five years of the European Journal of Government and Economics

This editorial statement reflects on the experience from the first five years of the European Journal of Government and Economics and proposes some broad ideas about what we believe should be the future of the journal in the following years. The developments and ideas presented here are divided in three parts: achievements and difficulties of the past five-year period, the renewal of the editorial team, and new challenges for the future

Trade Shocks in Brazil: An Investigation of Effects on Regional Manufacturing Wages

Brazil has experienced two trade shocks in the 90’s: unilateral liberalization, which weighted average nominal tariff reduced from 37.7% in 1988 to 10.2% in 1994; drastically real devaluation of 47% in the exchange rate in 1999. These two effects has influenced the location of industry in Brazil, since the industry center of Brazil, Sao Paulo State, reduced its participation in the industry sector from 52% in 1985 to 43% in 2002. This occurs when the dispersion forces overcome the agglomeration ones. The main dispersion force evidenced by the literature is the increase of competition, not only in the goods market (a new product), but also in the factor market (demand of labor, which increases wages). In a trade agreement, the most common trade shock, these two forces occurred simultaneously. At this case, it is possible to distinguish between two dispersion forces: competition of the imported goods (first shock); competition in the labor market (second shock). One way to evaluate these effects can be by investigating the effectiveness of transport cost to understand the regional differences in wages and if it has reduced (or increased) its explanation power after the trade shock. In order to do that, the methodology of Hanson 1997 will be used as a basic framework. It is possible to analyze the effects of these trade shocks in the disparities of regional wages in Brazil with his methodology. However, there will be some differences to his framework. First, Hanson uses state level data and this paper has a more disaggregated regional data (microregion, which divides Brazil into more than 500 parts). Second, Hanson doesn’t take into account any change in educational level, infrastructure improvement or government intervention, which are considered in this investigation. The first results show that transport cost is important to understand differences in wages between Brazilian microregions and trade shocks have influenced in some sense these disparities, but not so consistently as transport costs. Moreover, it seems that dispersion force of the second shock was greater than the first one, therefore, competition to hire new employees expel more plants to lower wages regions than comptetion with new products.

Can we learn anything from economic geography proper?.

This paper considers the ways geographers (proper) and (geographical) economists approach the study of economic geography. It argues that there are two areas where the approach of the latter is more robust than the former. First, formal models identify which assumptions are crucial in obtaining a particular result and enforce internal consistency when moving from micro to macro behaviour. Second, empirical work tends to be more rigorous. There is much greater emphasis on identifying and testing refutable predictions from theory and on dealing with issues of observational equivalence. But any approach can be improved and so the paper also identifies ways in which geographical economists could learn from the direction taken by economic geographers proper.