Migration and Innovation - Does Cultural Diversity Matter for Regional R&D Activity?

Recent theoretical research deals with economic costs and benefits of cultural diversity related to immigration. Empirical evidence regarding the impact of cultural diversity on economic performance is still scarce. This paper aims at investigating the effects of diversity on innovation and at providing corresponding empirical evidence. We apply the knowledge production function approach to investigate the significance of cultural diversity of work force for innovation output. The regression analysis considers the determinants of regional innovation, focusing on the effect of diversity, for a cross-section of German regions in the period 1995 to 2000.

Migration and innovation: Does cultural diversity matter for regional R&D activity?

"Recent theoretical research deals with economic costs and benefits of cultural diversity related to immigration. However, empirical evidence regarding the impact of cultural diversity on economic performance is still scarce. This paper investigates the significance of cultural diversity of the workforce on innovation output for a cross-section of German regions. The findings indicate that cultural diversity indeed affects innovative activity. The results suggest that differences in knowledge and capabilities of workers from diverse cultural backgrounds enhance performance of regional R&D sectors. However, education levels are also important. Diversity among highly qualified employees has the strongest impact on innovation output." (Author's abstract, IAB-Doku) ((en))Einwanderung - Auswirkungen, kulturelle Faktoren, Forschung und Entwicklung, Innovationspotenzial, Innovationsfähigkeit, regionale Faktoren, Arbeitskräftestruktur, regionale Herkunft, ausländische Arbeitnehmer, Wissensarbeit, Wissenstransfer, regionale Disparität, Arbeitsmigration - Auswirkungen, Migranten, Qualifikationsniveau, Patente - Quote, regionaler Vergleich

The Impact of EU Enlargement on European Border Regions

EU enlargement is supposed to entail profound impact on the location of economic activities in Europe. Although there is concern about the implications of enlargement for regional disparities in the EU, corresponding empirical results are still rare. The objective of this analysis is to provide empirical evidence on enlargement effects with a special focus on border regions in the EU27 since they are likely to play a critical role within the spatial dynamics initiated by integration. Departing from a three-region economic geography model we investigate whether changes in market access released by integration result in above-average integration benefits in internal border regions.

Integration and labour markets in European border regions

"Border regions are likely to play a critical role within the spatial dynamics initiated by the enlargement of the EU. This paper deals with the effects of integration on labour markets in border regions. Within the framework of different theoretical approaches, the effects of integration on location conditions and labour market disparities along national borders are analysed. Furthermore, we investigate empirically the degree of labour market integration in European border regions. Measures of spatial association are used as indicators of the intensity of integration among neighbouring labour markets. The results of an analysis of per capita income and unemployment for the period 1995-2000 point to a measurable spatial segmentation of labour markets along national borders even among highly integrated EU15 countries. On average, border regions in the EU are characterised by a lower degree of labour market integration than non-border areas, due to significant border impediments that hamper equilibrating forces between labour markets on both sides of national frontiers." (Author's abstract, IAB-Doku) ((en))europäische Integration, Grenzgebiet, EU-Erweiterung, Arbeitsmarktentwicklung, regionaler Arbeitsmarkt, Standortfaktoren, grenzüberschreitende Zusammenarbeit, Einkommensentwicklung, Arbeitslosigkeit, Außenhandelsverflechtung, Arbeitskräftemobilität, Wirtschaftsgeografie, Europäische Union

The impact of Poland’s EU accession on labour supply in the German-Polish border region – What can we expect?

While barriers to trade between EU-15 and accession countries have been completely abolished on May 1st 2004, other integration impediments remain to exist in the enlarged EU. These will steadily decrease within the next years, e.g. by new member states joining the Schengen Treaty and Euro area. A significant outstanding integration step is the liberalisation of labour mobility between EU-15 and new member states which will be realised not later than 2011. In this context it is often argued that the free movement of labour could worsen labour market problems in the former EU-15, especially in regions neighbouring the new member countries. This paper provides an assessment of the impact of enlargement on labour markets in the German-Polish border region. As a starting point for the analysis, current labour market conditions and income disparities in the German-Polish border region are analysed. Furthermore, the paper summarises relevant implications of migration theories and gives an outlook on the development of factors determining cross-border labour migration in the German-Polish border region. Finally, different estimates of migration and commuting potential affecting labour markets in the German-Polish border region until 2020 are discussed.

Regional labor demand and national labor market institutions in the EU15

The labor market effects of the recent financial and economic crisis are rather heterogeneous across countries and regions. Such differences in labor market performance among industrialized countries are an issue of ongoing research. The objective of this paper is to analyse labor market disparities among European regions and to provide evidence on the factors behind these differences. Whereas previous research focused on effects of national labor market institutions, we also take structural characteristics of regions into account and investigate differences in labor demand responsiveness and their potential determinants. The data set covers the NUTS2 regions in the EU15 for the period 1980 to 2008. We apply an error correction model that is combined with a spatial modeling approach in order to account for interaction among neighboring labor markets. Our findings point to substantially distinct labor demand responses to changes in output and wages among European countries and regions. Moreover, the rate of adjustment to disequilibrium is subject to a signifcant variation across units of observation. Whereas evidence on the significance of region specific variables as explanatory factors is weak, labor market institutions, especially regulations that affect the determination of wages, explain an important fraction of the disparities. --Regional labor markets,labor demand,institutions,Europe,error correction model

Integration and Labour Markets in European Border regions

Border regions are likely to play a critical role within the special dynamics initiated by the enlargement of the EU. This paper deals with the effects of integration on labour market conditions in border regions. Within the framework of different theoretical approaches the effects of integration on location conditions and labour markets in border regions are analysed. Furthermore, we investigate empirically the degree of labour market integration in European border regions. Measures of spatial association are applied as indicators for the intensity of integration among neighbouring labour markets. The results of an analysis of per capita income and unemployment for the period 1995 to 2000 point at a measurable spatial segmentation of labour markets even among highly integrated EU15 countries. On average, border regions in the EU are characterised by lower degree of labour market integration than non-border areas due to significant border impediments that hamper equilibrating forces between labour markets on both sides of national frontiers. JEL classification: F22, J61, R23 Keywords: European Integration, Labour Market Disparities, Border Regions, Spatial Dependence

Threshold Effects and Regional Economic Growth – Evidence from West Germany

We study an overlapping generations model of human capital accumulation with threshold effects using regional data for West Germany. Our basic goal is to shed light on what makes German regions grow. The paper finds that the relative income distribution appears to be stratifying into a trimodal distribution. Thus, application of the threshold model to a real world case, here West Germany, shows that the model might help to explain regional growth patterns.regional economic growth, human capital, Germany

EU enlargement and convergence: Does market access matter?

Economic integration in Europe has been accompanied by concerns about the impact of integration on regional disparities in the EU. The purpose of this paper is to investigate the effects of the most recent EU enlargement on convergence among countries and regions in the EU27. Departing from a new economic geography framework, we focus on integration effects caused by changes in market access released by the reduction of trade impediments. Special attention is paid to the catching-up process of the new member states and the development of regional disparities within the Eastern European countries. The results point to a catching-up process of the new member states. However, at the same time regional disparities within the NMS increase. Changes in market access seem to foster these processes at the national and regional level since the Eastern European countries achieve highest growth of market potentials due to declining barriers to trade. Moreover, the more prosperous regions in Eastern Europe realize the strongest benefits. However, taking these integration effects into account does not significantly alter the findings of our convergence analysis. --Integration,market access,EU enlargement,convergence

Integration effects in border regions - a survey of economic theory and empirical studies

Border regions and border effects currently attract a lot of attention in political practice and economic research. Substantial interest in regions located along the frontiers of integrating countries is predominantly inspired by the presumption that their specific geographic position might cause peculiarities in economic adjustments to integration. This survey explores whether economic theory and empirical studies support the assessment that integration effects concentrate in border regions. Economic theory alone allows only very vague conclusions about the spatial effects of integration. Depending on specific circumstances, border regions might benefit, lose or not be affected by integration. Empirical research on border regions - undertaken so far - does not allow to draw clear-cut conclusions as well. At present, there is neither a direct test for integration effects in border regions, nor a comprehensive study on the development of border regions. To sum up, the survey suggests that rigorous theoretical and empirical analysis is needed to foster the understanding of integration effects in border regions.