The spatial hierarchy of technological change and economic development in Europe

Abstract

This paper discusses the possibility of a spatial hierarchy of innovation and growth dynamics in Europe. A spatial hierarchy is understood as a geographical clustering of regions, where important differences exist in terms of innovation and growth dynamics between the clusters. The literature on regional growth and innovation is briefly scanned. After this, a database on European regional growth and innovation dynamics is presented. Spatial correlation analysis and spatial principal components analysis are used to explore the possibility of a spatial hierarchy in Europe. The results point to a hierarchy consisting of four groups: South Europe, East Europe, and two groups in West and North Europe. Growth and innovation performance in these clusters are discussed, and some policy conclusions are drawn.

References

  1. Abramovitz MA (1986) Catching up, forging ahead and falling behind. J Econ Hist 46: 385–406

    Article  Google Scholar 

  2. Ammermuller A, Heijke H, Wossmann L (2005) Schooling quality in Eastern Europe: educational production during transition. Econ Educ Rev 24: 579–599. doi:10.1016/j.econedurev.2004.08.010

    Article  Google Scholar 

  3. Arrow KJ (1962) Economic welfare and the allocation of resources for invention. In: Nelson RR (eds) The rate and direction of inventive activity: economic and social factors. National Bureau of Economic Research, New York, pp 609–625

    Google Scholar 

  4. Barro RJ, Sala-i-Martin X (1991) Convergence across states and regions. Brookings Pap Econ Act 22: 107–182. doi:10.2307/2534639

    Article  Google Scholar 

  5. Begg I (2007) Cohesion in the EU. Structural policy and economic convergence. CESifo Forum 9: 3–9

    Google Scholar 

  6. Bottazzi L, Peri G (2003) Innovation and spillovers in regions: evidence from European patent data. Eur Econ Rev 47: 687–710

    Article  Google Scholar 

  7. Breschi S, Lissoni F (2001) Knowledge spillovers and local innovation systems: a critical survey. Ind Corp Change 10: 975–1005. doi:10.1093/icc/10.4.975

    Article  Google Scholar 

  8. Caniëls MCJ, Verspagen B (2001) Barriers to knowledge spillovers and regional convergence in an evolutionary model. J Evol Econ 11: 307–329. doi:10.1007/s001910100085

    Article  Google Scholar 

  9. Cohen WM, Levinthal DA (1989) Innovation and learning: the two faces of R&D. Econ J 99: 569–596. doi:10.2307/2233763

    Article  Google Scholar 

  10. Criscuolo P, Narula R (2008) A novel approach to national technological accumulation and absorptive capacity: aggregating Cohen and Levinthal. Eur J Dev Res 20: 56–73. doi:10.1080/09578810701853181

    Article  Google Scholar 

  11. Cuadrado-Roura JR (2001) Regional convergence in the European Union: from hypothesis to the actual trends. Ann Reg Sci 35: 333–356. doi:10.1007/s001680100054

    Article  Google Scholar 

  12. Dosi G (1988) Sources, procedures and microeconomic effects of innovation. J Econ Lit 26: 1120–1171

    Google Scholar 

  13. Edler J, Kuhlmann S, Behrens M (2003) Changing governance of research and technology policy: the European research area. Edward Elgar, Cheltenham

    Google Scholar 

  14. European Commission (2001) European innovation scoreboard 2001. SEC, Luxemburg, p 1414

  15. Fagerberg J (1994) Technology and international differences in growth rates. J Econ Lit 32: 1147–1175

    Google Scholar 

  16. Fagerberg J, Verspagen B (1996) Heading for divergence? Regional growth in Europe reconsidered. J Common Mark Stud 34: 431–448. doi:10.1111/j.1468-5965.1996.tb00580.x

    Article  Google Scholar 

  17. Fagerberg J, Verspagen B, Caniëls M (1997) Technology, growth and unemployment across European regions. Reg Stud 31: 457–466. doi:10.1080/00343409750132252

    Article  Google Scholar 

  18. Frenken K, Van Oort F, Verburg T (2007) Related variety, unrelated variety and regional economic growth. Reg Stud 41: 685–697. doi:10.1080/00343400601120296

    Article  Google Scholar 

  19. Glaeser EL, Kallal H, Scheinkman J, Shleifer A (1992) Growth in cities. J Polit Econ 100: 1126–1152. doi:10.1086/261856

    Article  Google Scholar 

  20. Griliches Z (1990) Patent statistics as economic indicators: a survey. J Econ Lit 28: 1661–1707

    Google Scholar 

  21. Grupp H, Mogee ME (2004) Indicators for national science and technology policy: how robust are composite indicators. Res Policy 33: 1373–1384. doi:10.1016/j.respol.2004.09.007

    Article  Google Scholar 

  22. Henderson JV (2003) Marshall’s scale economies. J Urban Econ 53: 1–28. doi:10.1016/S0094-1190(02)00505-3

    Article  Google Scholar 

  23. Hollanders H, Dunnewijk T, Wintjes R (2008) Benchmarking regions in the Enlarged Europe. In: Nauwelaers C, Wintjes R (eds) Innovation policy in Europe. Edward Elgar, Cheltenham

    Google Scholar 

  24. Jacobs J (1969) The economy of cities. Vintage, New York

    Google Scholar 

  25. Jaffe AB, Trajtenberg M, Henderson R (1993) Geographic localization of knowledge spillovers as evidenced by patent citations. Q J Econ 108: 577–598. doi:10.2307/2118401

    Article  Google Scholar 

  26. Johnson B, Lorenz E, Lundvall BA (2002) Why all this fuss about codified and tacit knowledge. Ind Corp Change 11: 245–262. doi:10.1093/icc/11.2.245

    Article  Google Scholar 

  27. Krugman P (1991) Increasing returns and economic geography. J Polit Econ 99: 483–499. doi:10.1086/261763

    Article  Google Scholar 

  28. Krugman P (1993) Lessons of Massachusetts for EMU. In: Torres F, Giavazzi F (eds) Adjustment and growth in the European Monetary Union Cambridge. Cambridge University Press, London, pp 241–269

    Google Scholar 

  29. Martin P, Ottaviano G (1999) Growing locations: industry location in a model of endogenous growth. Eur Econ Rev 43: 281–302. doi:10.1016/S0014-2921(98)00031-2

    Article  Google Scholar 

  30. Maurseth PB, Verspagen B (2002) Knowledge spillovers in Europe: a patent citations analysis. Scand J Econ 104: 531–545

    Article  Google Scholar 

  31. Morgan K (2004) The exaggerated death of geography: learning, proximity and territorial innovation systems. J Econ Geogr 4: 3–21. doi:10.1093/jeg/4.1.3

    Article  Google Scholar 

  32. Storper M, Walker R (1989) The capitalist imperative. Territory, technology and industrial growth. Blackwell, Oxford

    Google Scholar 

  33. Van Moergastel T, Slabbers M, Verspagen B (1994) MERIT concordance table: IPC-ISIC (rev. 2). MERIT Research Memorandum 2/94-004, University of Maastricht

  34. Verspagen B (1991) A new empirical approach to catching up or falling behind. Struct Change Econ Dyn 2: 359–380. doi:10.1016/S0954-349X(05)80008-6

    Article  Google Scholar 

  35. Verspagen B (1999) European ‘regional clubs’: do they exist, and where are they heading? On economic and technological differences between European regions. In: Adams J, Pigliaru F (eds) Economic growth and change. National and regional patterns of convergence and divergence. Edward Elgar, Cheltenham, pp 236–256

    Google Scholar 

  36. Verspagen B (2004) Innovation and economic growth. In: Fagerbergn J, Mowery DC, Nelson RR (eds) Oxford handbook of innovation. Oxford University Press, Oxford

    Google Scholar 

  37. Von Hippel E (1994) ‘Sticky information’ and the locus of problem solving: implications for innovation. Manage Sci 40: 429–439. doi:10.1287/mnsc.40.4.429

    Article  Google Scholar 

  38. Wartenberg D (1985) Multivariate spatial correlation: a method for exploratory geographical analysis. Geogr Anal 17: 263–283

    Google Scholar 

  39. Zabala-Iturriagagoitia JM, Voigt P, Gutiérrez-Gracia A, Jiménez-Sáez F (2007) Regional innovation systems: how to assess performance. Reg Stud 41: 661–672. doi:10.1080/00343400601120270

    Article  Google Scholar 

Download references

Acknowledgments

This research is part of the DIME Network sponsored under the EU 6th Framework Programme. This paper was presented at the Kiel workshop on Agglomeration and Growth In Knowledge-based Societies, 20–21 April 2007, at a seminar at IKE, University of Aalborg, DK, at the Globelics Academy, Lisbon, PT, 2–12 May 2007, at the EMAEE Conference, 17–19 May 2007 at Manchester Metropolitan University, UK, and at the Uddevalla Symposium 2007. I thank participants at these meetings, as well as two anonymous referees, for comments and suggestions.

Open Access

This article is distributed under the terms of the Creative Commons Attribution Noncommercial License which permits any noncommercial use, distribution, and reproduction in any medium, provided the original author(s) and source are credited.

Author information

Affiliations

Authors

Corresponding author

Correspondence to Bart Verspagen.

Rights and permissions

Open Access This is an open access article distributed under the terms of the Creative Commons Attribution Noncommercial License (https://creativecommons.org/licenses/by-nc/2.0), which permits any noncommercial use, distribution, and reproduction in any medium, provided the original author(s) and source are credited.

Reprints and Permissions

About this article

Cite this article

Verspagen, B. The spatial hierarchy of technological change and economic development in Europe. Ann Reg Sci 45, 109–132 (2010). https://doi.org/10.1007/s00168-009-0293-8

Download citation

JEL Classification

  • O33
  • R3