Knowledge Spillovers, Externalities and Regional Economic Growth in the EU : Theories and Empirical Evidences

Coesione e competitività sono i principali obiettivi della politica regionale Europea. È però possibile che investimenti in competitività possano beneficiare maggiormente le regioni più sviluppate, a discapito della coesione. Si tratta di una contraddizione? In questo lavoro si risponde a questa domanda approfondendo tre argomenti. Il primo riguarda le determinanti della crescita regionale. Il secondo interessa il ruolo degli spillover di conoscenza per l’innovazione regionale. Il terzo è relativo al contributo delle infrastrutture di conoscenza all’attività innovativa regionale. I principali risultati possono essere sintetizzati in questa maniera. Una più alta crescita nella regioni meno sviluppate è importante ma non sufficiente a garantire convergenza. La crescita, nel lungo periodo, è determinata dagli investimenti in conoscenza, che producono rendimenti crescenti. La mancanza di sviluppo nelle regioni più arretrate può essere attribuita a questi divari di conoscenza, non sempre facili da colmare. Le esternalità alla base dei rendimenti crescenti sono estremamente localizzate e non si diffondono facilmente nelle economie. D’altra parte la conoscenza non si produce solamente con investimenti in ricerca. La promozione della ristrutturazione economica regionale verso modelli basati sulla conoscenza dovrebbe dedicare particolare attenzione alle fonti esterne di conoscenza, quali, accanto alle università, i servizi ad alto contenuto di conoscenza.Cohesion and competitiveness are the two main objectives of the EU regional policy. It seems however that improving competitiveness will benefit developed regions more, implying a less cohesive Europe. Is that a contradiction? This work answers this question by studying three related topics. The first concerns the determinants of regional growth in Europe. The second is about the importance of interregional knowledge spillovers for the regional innovative activity. The third is related to the way knowledge infrastructures can shape regional innovative activity. The main results can be summarized as follows. The higher growth in least developed region is important but not sufficient to catch-up. Growth, in the long-run, is determined by investments in knowledge, which produce increasing returns. The lack of development of lagging regions could be accordingly ascribed to the existence of knowledge gaps which are not as easy to be filled. Knowledge externalities, the essence of the more than proportional returns, are extremely localized and do not necessarily spread across the economies. However knowledge is not only produced through R&D. The promotion of economic restructuring of lagging regions toward a knowledge-based economy should deserve special attention to external knowledge sources like, alongside universities, Knowledge Intensive Business Services

On specifying heterogeneity in knowledge production functions

Within the Geography of Innovation literature, the Knowledge Production Function approach has become a reference framework to investigate the presence of localized knowledge spillovers and spatial econometric tools have been applied to study interregional spillovers. A linear specification for the KPF is assumed linking patents to R&D expenditure. This approach however suffers of different drawbacks. First patent applications are count data in nature. Patents per inhabitants may produce an unrealistic picture of the spatial distribution of innovative activities. Secondly, spatial heterogeneity is not usually observed, producing both omitted variables bias and spatial correlation in the error structure. Third, a positive R&D-patents linkage may arise as a spurious correlation if market size is not observed, causing R&D to be endogenous. This paper uses a regional cross section model to study the spatial distribution of high tech patents across 232 European regions in the period 2005/2006 to address these issues. Two main processes drive technological change in the model: research activities and knowledge generated outside firms and in a second moment embedded through either formal or informal acquisition. Among the different knowledge sources we particularly focus on the role of firms working in Knowledge Intensive Business Services and on that of universities. In developing the empirical model we take into account that a) patents are count data; b) the exclusion of market size will cause biased and inconsistent model parameters estimates; c) estimates of interregional spillovers may be biased by the omission of heterogeneity in the model specification. Empirical results indicate that, as expected, a count data distribution best fits the data, producing less spatially autocorrelated residuals. Regional innovative activity is explained by both investments in research and localization of KIBS, but only the first generates positive interregional externalities. Scientific universities do not directly affect the production of new knowledge. However, different knowledge production processes characterize regions with and without scientific universities, with R&D driving innovation in the sooner and KIBS in the latter. Finally, most of what are assumed to be interregional spillovers reveal to be, at a more careful inquiry, effect due to unaccounted spatial heterogeneity in regional innovation.

Investment behaviour of EU arable crop farms in selected EU countries and the impact of policy reforms. Factor Markets Working Document No. 42, May 2013

This deliverable provides a comparative analysis, among selected EU member states, of the investment demand of a sample of specialised field crop farms for farm buildings, machinery and equipment as determined by different types and levels of Common Agricultural Policy support. It allows for the existence of uncertainty in the price of output farmers receive and for both long- and short-run determinants of investment levels, as well as for the presence of irregularities in the cost adjustment function due to the existence of threshold-type behaviours. The empirical estimation reveals that three investment regimes are consistently identified in Germany and Hungary, across asset and support types, and in France for machinery and equipment. More traditional disinvestment-investment type behaviours characterise investment in farm building in France and the UK, across support types, and Italy for both asset classes under coupled payments. The long-run dynamic adjustment of capital stocks is consistently and significantly estimated to be towards a – mostly non-stationary – lower level of capitalisation of the farm analysed. By contrast, the expected largely positive short-run effects of an increase in output prices are often not significant. The effect of CAP support on both types of investment is positive, although seldom significant, while the proxy for uncertainty employed fails to be significant yet, in most cases, has the expected effect of reducing the investment levels

The Fire Risk in Photovoltaic Installations – Checking the PV Modules Safety in Case of Fire☆

Abstract The installation of photovoltaic systems on buildings involves several problems, including the risk of fire (2011, Italy: 298 Fire fighters interventions; 2012, Germany: 390 established PV plant fires), which many countries are trying to solve. Standards focused specifically on fire behavior of PV modules don't exist yet. Currently, test protocols focused on other equipment are used to test PV modules fire reaction. About that, a research program was carried out to do a short analysis of PV systems fire events and to analyze the current test protocols to identify criticalities and possible improvements / protocols variants

The Fire Risk in Photovoltaic Installations - Test Protocols For Fire Behavior of PV Modules

Abstract The fire risk in the photovoltaic systems has emerged over the years as not negligible, setting in motion a process, which involves various organizations (control Authorities, standardization bodies, modules manufacturers, etc.) for achieving the codification of construction, design and installation of these systems and their components to minimize fire risk. Currently, European standards focused specifically on fire behavior of PV modules don't exist yet, so test protocols focused on other equipment are used to test PV modules reaction to fire. About that, a research program was carried out to do a short analysis of PV systems fire events, to analyze the current test protocols and for identifying their criticalities and possible improvements. In particular, some variants of these protocols have been developed basing on some of the existing test protocols in standard harmonized at European level about reaction to fire of construction products. These variants have been designed for being specific test tools for determination of reaction to fire features of PV modules with main attention to important peculiarities such as: modules inclination, initial fire particularly aggressive

Urban spatial structure and land use fragmentation: the case of Milan FUA

We study the relationship between urban spatial structure and land use fragmentation in the Functional Urban Area (FUA) of Milan to understand if and how the urban morphology influences the patterns of land use at the metropolitan scale. Using Exploratory Spatial Data Analysis, we find that the spatial structure of the urbanisation in the study area follows the traditional monocentric distribution in the south while multi-centricity characterises the north to the largest extent. Findings suggest clearly that different urban spatial structures lead to diverse patterns of land use. In particular, it appears that the degree of discontinuity of residential areas is lower in the presence of secondary sub-centres compared to the mono-centric distribution

Knowledge, innovation, agglomeration and regional convergence in the EU: motivating place-based regional intervention

The accumulation of knowledge, human capital and agglomeration are indicated as prominent sources of externalities. Therefore, this study examines their contributions to the economic growth of regions in Europe, while accounting for non-linear and threshold effects as well as spatial dependence. The results highlight differentiated growth patterns for less and more developed regions with the effect of knowledge being considerable only in the latter group. The findings suggest that there is the potential for innovation and agglomeration in many less developed regions located in both the new member states (NMS) and the old member states (OMS). However, to reach sustained growth, structural change is necessary in these regions. We conclude that the existing gaps in the economic structure are deemed responsible for the persistence of income disparities. This reinforces the call for specific policy actions in catching-up regions, thus strengthening the arguments in favour of a place-based approach to regional policy

MIDGARD: A Simulation Platform for Autonomous Navigation in Unstructured Environments

We present MIDGARD, an open-source simulation platform for autonomous robot navigation in outdoor unstructured environments. MIDGARD is designed to enable the training of autonomous agents (e.g., unmanned ground vehicles) in photorealistic 3D environments, and to support the generalization skills of learning-based agents through the variability in training scenarios. MIDGARD's main features include a configurable, extensible, and difficulty-driven procedural landscape generation pipeline, with fast and photorealistic scene rendering based on Unreal Engine. Additionally, MIDGARD has built-in support for OpenAI Gym, a programming interface for feature extension (e.g., integrating new types of sensors, customizing exposing internal simulation variables), and a variety of simulated agent sensors (e.g., RGB, depth and instance/semantic segmentation). We evaluate MIDGARD's capabilities as a benchmarking tool for robot navigation utilizing a set of state-of-the-art reinforcement learning algorithms. The results demonstrate MIDGARD's suitability as a simulation and training environment, as well as the effectiveness of our procedural generation approach in controlling scene difficulty, which directly reflects on accuracy metrics. MIDGARD build, source code and documentation are available at https://midgardsim.org/