From Average to the Frontier: A Nonparametric Performance Approach for Analyzing Externalities and Regions’ Innovativeness

Although a rich literature has emerged analyzing the impact of localization, urbanization, and Jacobs externalities on regional innovativeness, the findings are still contradictory. Traditional studies differ mainly in the employed data but rely on similar empirical approaches. This paper argues in favor of using in this context production frontier approaches instead of the commonly employed production function approaches. In addition, a nonparametric frontier approach is used to empirically examine the influence of the externalities on regions’ innovativeness. For four different industries positive effect of localization and urbanization externalities are found. In contrast, with the exception of the transport equipment industry, Jacobs externalities seem to be of minor importance.regional innovation performance, nonparametric frontier analysis, German electrics, electronics industry

The Bright and Dark Side of Cooperation for Regional Innovation Performance

Studies analyzing the importance of intra- and inter-regional cooperation for regional innovation performance are mainly of qualitative nature and focus strongly on the positive effects that high levels of cooperation can yield. For the case of the German labor market regions and the Electrics & Electronics industry the paper provides a quantitative-empirical analysis taking into account the possibility of negative effects related to regional lock-in, lock-out, and cooperation overload situations. Using conditional nonparametric frontier techniques and cooperation behavior measures we find positive as well as substantial negative effects of cooperation with the latter being induced by excessive and unbalanced cooperation behavior.regional innovation performance, cooperation, lock-out, lock-in, cooperation overload

Applying a Nonparametric Efficiency Analysis to Measure Conversion Efficiency in Great Britain

In the literature on Sen’s capability approach, studies focussing on the empirical measurement of conversion factors are comparatively rare. We add to this field by adopting a measure of "conversion efficiency" that captures the efficiency with which individuals convert their resources into achieved functioning. We use a nonparametric efficiency procedure borrowed from production theory and construct such a measure for a set of basic functionings, using data from the wave 2006 of the British Household Panel Survey (BHPS). In Great Britain, 49.88% of the individuals can be considered efficient while the mean of the inefficient individuals reaches one fifth less functioning achievement. An individual's conversion efficiency is positively affected by getting older, being self-employed, married, having no health problems and living in the London area. On the other hand, being unemployed, separated/divorced/widowed and (self-assessed) disabled decrease an individual's conversion efficiency.conversion efficiency, welfare measurement, robust nonparametric efficiency analysis, functioning production

The importance of R&D subsidies and technological infrastructure for regional innovation performance - A conditional efficiency approach

The importance of R&D subsidies for innovation activities is highlighted by numerous firm-level studies. These approaches miss however the systematic regional character of innovation activities and potential firm-spanning effects of this policy measure. The literature on regional innovation performance has widely neglected R&D subsidies so far. This paper analyzes the importance of R&D subsidies as well as the relevance of a publicly funded technological infrastructure for the innovation efficiency of German regions. Using conditional nonparametric frontier techniques we find positive effects of R&D subsidies and somewhat smaller ones for the technological infrastructure, which however vary between industries.innovation policy, regional innovation efficiency, technological infrastructure, stepwise conditional efficiency analysis

The cognitive and geographical composition of ego-networks of firms – and how they impact on their innovation performance

Firms’ embeddedness into knowledge networks has received much attention in the literature. However, little is known about the composition of firms’ ego-networks with respect to different types of proximities. Based on survey data of 295 firms in eight European regions, we show that the ego-networks of firms systematically differ in their geographical and cognitive embeddedness. We find that firms’ innovation performance is stimulated if the firm primarily links to technologically related firms as well as technologically similar organizations. Connecting with organizations at different geographical levels yields positive effects as well.ego-networks, geographical proximity, innovation performance, knowledge networks, technological relatedness

The Neglected Dimension of Well-Being: Analyzing the Development of "Conversion Efficiency" in Great Britain

In Amartya Sen's capability approach, policy makers can focus on different levels to influence the well-being of a society. We argue that improving capability to function as well as absolute levels of functioning achievement should be complemented by attention given to improving individuals' "conversion efficiency", i.e. the efficiency with which individual resources are converted into well-being. In order to examine effects of policies on conversion efficiency and to better understand the trajectories of human well-being over time, it is necessary to measure the development of conversion efficiency. We suggest an intertemporal index of conversion efficiency estimated via a nonparametric order-m approach borrowed from the production efficiency literature to analyze this development of our welfare measure. We exemplify this approach using micro level data from the British Household Panel Survey (BHPS), tracking conversion efficiency for a set of basic functionings in Great Britain from 1991 to 2006. We find that under 30% of the British populace were efficient in their conversion of resources into functionings during the sample horizon. Moreover, age, education and self-employment increase an individual's conversion efficiency, while living in London, being disabled and being separated, divorced or widowed all decrease conversion efficiency. Being married also decreases the conversion efficiency and we find few evidence of gender disparities in conversion efficiency.capability approach, conversion efficiency, efficiency analysis, intertemporal development

Structural properties of cooperation networks in Germany: From basic to applied research

Economists pay more and more attention to knowledge networks and drivers of their development. Consequently, a rich literature emerged analyzing factors explaining the emergence of intra-organizational links. Despite substantial work focusing on the dyad level, only little is known about how and why (global) network structures differ between technologies or industries. The study is based on a new data source on subsidized R&D cooperation in Germany, which is presented in detail and discussed with respect to other types of relational data. A comparison of networks within ten technologies allows us to identify systematic differences between basic and applied research networks.R&D subsidies, network, cooperation, Foerderkatalog, Germany

Conversion Efficiency as a Complementing Measure of Welfare in Capability Space

In the capability literature, studies on the empirical measurement in the functionings space are abundant and a few studies even measure capability to function. We suggest adopting a third measure of welfare relevant to economists, namely the "conversion efficiency" measuring the efficiency with which individuals convert their resources into achieved functioning. We use a nonparametric efficiency procedure and construct such a measure for a basket of basic functioning achievement, using data from the British Household Panel Survey (BHPS).conversion efficiency, welfare measurement, robust nonparametric efficiency analysis, functioning production

Regional Factors and Innovativeness - An Empirical Analysis of Four German Industries

A growing body of work emphasizes the importance of regional factors for regional innovativeness. In this paper, about seventy variables approximating the social-economic characteristics of regions are aggregated to twelve regional factors. In four industry-specific set-ups their influence on firms' innovativeness is tested. The study confirms that inter-industrial differences exist in the importance of these factors. In the empirical analyses a log-linear model is compared with a linear approach. While both are theoretically problematic it is shown that the log-linear model performs better in the empirical assessment.regional innovation performance, regional innovativeness, knowledge production function, industry comparison, German regions