Skip to main content

Skilled labour mobility, networks and knowledge creation in regions: a panel data approach

The Annals of Regional Science volume 51, pages 191–212 (2013)Cite this article

Abstract

The aim of this paper is to investigate the relative contribution of different features of the local labour market for inventors on regional patenting. By means of a knowledge production function and a sample of 276 European regions, we assess whether local labour mobility of inventors, as well as the scale and extent of their collaborative research networks, correlates with innovation outcomes. In the second part of the paper, we extend the analysis to the role of spatial mobility of knowledge workers and cross-regional research networks as predictors of regional patenting.

This is a preview of subscription content, access via your institution.

Access options

Buy single article

Instant access to the full article PDF.

USD 39.95

Price includes VAT (USA)
Tax calculation will be finalised during checkout.

Notes

  1. NUTS stands for the French acronym “nomenclature d’unités territoriales statistiques” and refers to administrative divisions within Europe devised for statistical purposes.

  2. We are aware about an important debate within the literature on whether the strength of social ties matters for innovation (Granovetter 1973) and the detrimental role of too much social proximity (socially embedded relations between actors) for knowledge diffusion and innovation due to the problem of lock-in (Boschma 2005; Uzzi 1997). The present inquiry does not, however, enter this debate and, as such, we prefer to leave this discussion and potential empirical analysis for further research.

  3. SNA has been widely applied to collaboration in research and innovation studies, although a review of detailed methodological contributions falls outside the scope of this paper. In fact, in recent years, many contributions have been made to economics and economic geography using SNA tools, most notably Balconi et al. (2004), Breschi and Catalini (2009), and Ter Wal and Boschma (2009). For a more complete theoretical discussion of the methods and applications of SNA, see Wasserman and Faust (1994).

  4. We have omitted the regions of Las Canarias, Ceuta, Melilla, Madeira, Açores, Guadeloupe, Martinique, Guyane and Reunion due to their distance from continental Europe. We do not expect this omission to alter significantly our results.

  5. EPO stands for European Patent Office.

  6. Although this variable captures inventors’ overall propensity to be connected, it overlooks that invention networks tend to be highly fragmented in different components of relatively small size. This variable, therefore, could overestimate the connectivity level, especially in the absence of a direct control for the size of the largest component or, perhaps better, the heterogeneity of the component size distribution (as discussed in Schilling and Phelps 2007, and Lobo and Strumsky 2008). This important limitation must be acknowledged, and we thank a referee for raising this point.

  7. We added a small value, 0.01, to all the explanatory variables presenting zero values in at least one observation to allow for a logarithmic transformation.

  8. International patent classification.

  9. For the calculation of this index, we have used the technological sector classification jointly produced by Fraunhofer Gesellschaft-ISI (Karlsruhe), Institut National de la Propriété In-dus-trielle (INPI, Paris) and Observatoire des Sciences and des Techniques (OST, Paris).

  10. The spatial lag of R&D expenditures is the average value of R&D expenditures in the neighbouring regions, where ‘neighbouring’ is defined through a predefined standardized weights matrix, as is customary in the literature. In this paper, the weights matrix is built as the inverse of the Euclidean distance between regions’ centroids. Following Bottazzi and Peri (2003), a cut-off of 300 km is introduced. Other definitions of the weights matrix barely alter the results.

    Table 5 External links and innovation: mobility, networks and spatial spillovers
    Full size table

References

  • Acs ZJ, Audretsch DB, Feldman MP (1994) R&D spillovers and recipient firm size. Rev Econ Stat 76: 363–367

    Article  Google Scholar 

  • Agrawal A, Cockburn I, McHale J (2006) Gone but not forgotten: labour flows, knowledge spillovers, and enduring social capital. J Econ Geogr 6:571–591

    Article  Google Scholar 

  • Agrawal A, Kapur D, McHale J (2008) How do spatial and social proximity influence knowledge flows? Evidence from patent data. J Urban Econ 64:258–269

    Article  Google Scholar 

  • Agrawal A, Kapur D, McHale J, Oettl A (2011) Brain drain or brain bank? The impact of skilled emigration on poor-country innovation. J Urban Econ 69:43–55

    Article  Google Scholar 

  • Almeida P, Kogut B (1999) Localisation of knowledge and the mobility of engineers in regional networks. Manag Sci 45:905–917

    Article  Google Scholar 

  • Arrow KJ (1962) The economic implications of learning by Doing. Rev Econ Stud 29(3):155–173

    Article  Google Scholar 

  • Audretsch DB, Feldman MP (1996) R&D Spillovers and the geography of innovation and production. Am Econ Rev 86:630–640

    Google Scholar 

  • Audretsch DB, Feldman M (2004) Knowledge Spillovers and the geography of innovation. In: Henderson V, Thisse J (eds) Handbook of urban and regional economics, vol 4. Elsevier, Amsterdam, pp 2713–2740

  • Balconi M, Breschi S, Lissoni F (2004) Networks of inventors and the role of academia: an exploration of Italian patent data. Res Policy 33:127–145

    Article  Google Scholar 

  • Bathelt H, Malberg A, Maskell P (2004) Clusters and knowledge: local buzz, global pipelines and the process of knowledge creation. Prog Hum Geogr 28:31–56

    Article  Google Scholar 

  • Bettencourt L, Lobo J, Strumsky D (2007) Invention in the city: increasing returns to patenting as a scaling function of metropolitan. Res Policy 36:107–120

    Article  Google Scholar 

  • Boschma R (2005) Proximity and innovation: a critical assessment. Reg Stud 39:61–74

    Article  Google Scholar 

  • Boschma R, Frenken K (2010) The spatial evolution of innovation networks. A proximity perspective. In: Boschma R, Martin R (eds) The handbook of evolutionary economic geography. Edward Elgar, Cheltenham, pp 120–135

    Google Scholar 

  • Boschma R, Eriksson R, Lindgren U (2009) How does labour mobility affect the performance of plants? The importance of relatedness and geographical proximity. J Econ Geogr 9:169–190

    Article  Google Scholar 

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

    Article  Google Scholar 

  • Breschi S, Catalini C (2009) Tracing the linkages between science and technology: an exploratory analysis of the research networks among scientists and inventors. Res Policy 39:14–26

    Article  Google Scholar 

  • Breschi S, Lenzi C (2011) Net and the city. Co-invention networks and the inventive productivity of US cities, mimeo.

  • Breschi S, Lissoni F (2001) Localised knowledge spillovers vs. innovative millieux: knowledge “tacitness” reconsidered. Pap Reg Sci 80:255–273

    Article  Google Scholar 

  • Breschi S, Lissoni F (2004) Knowledge networks from patent data: methodological issues and research targets. In: Moed H, Glänzel W, Schmoch U (eds) Handbook of quantitative science and technology research: the use of publication and patent statistics in studies of S&T systems. Springer, Berlin, pp 613–643

    Google Scholar 

  • Breschi S, Lissoni F (2009) Mobility of skilled workers and co-invention networks: an anatomy of localized knowledge flows. J Econ Geogr 9:439–468

    Article  Google Scholar 

  • Breschi S, Lenzi C, Lissoni F, Vezzulli A (2010) The geography of knowledge spillovers: the role of inventors’ mobility across firms and in space. In: Boschma R, Martin R (eds) The handbook of evolutionary economic geography. Edward Elgar, Cheltenham, pp 353–369

    Google Scholar 

  • Camagni R (1991) Innovation networks: spatial perspectives. Belhaven-Pinter, London

    Google Scholar 

  • Coe NM, Bunnell T (2003) ‘Spatializing’ knowledge communities: towards a conceptualisation of transnational innovation networks. Glob Netw 3:437–456

    Article  Google Scholar 

  • Cowan R, Jonard N (2004) Network structure and the diffusion of knowledge. J Econ Dyn Control 28:1557–1575

    Article  Google Scholar 

  • Feldman MP, Audretsch D (1999) Innovation in cities: science-based diversity, specialization and localized competition. Eur Econ Rev 43:409–429

    Article  Google Scholar 

  • Fleming L, King C, Juda A (2007) Small worlds and innovation. Org Sci 14:375–393

    Google Scholar 

  • Fratesi U, Senn L (2009) Regional growth, connections and economic modelling: an introduction. In: Fratesi U, Senn L (eds) Growth and innovation of competitive regions: the role of internal and external connections. Springer, Berlin, pp 3–28

    Chapter  Google Scholar 

  • Gertler MS, Levite YM (2005) Local nodes in global networks: the geography of knowledge flows in biotechnology innovation. Ind Innov 12:487–507

    Article  Google Scholar 

  • Gittelman M (2007) Does geography matter for science-based firms? Epistemic communities and the geography of research and patenting in biotechnology. Org Sci 18:724–741

    Article  Google Scholar 

  • Gomes-Casseres B, Hagedoorn J, Jaffe AB (2006) Do alliances promote knowledge flows? J Financial Econ 80:5–33

    Article  Google Scholar 

  • Grabher G (1993) The weakness of strong ties: the lock-in of regional development in the Ruhr area. In: Grabher G (ed) The embedded firm. Routledge, London, pp 255–277

    Google Scholar 

  • Granovetter MS (1973) The strength of weak ties. Am J Sociol 78:1360–1380

    Article  Google Scholar 

  • Griliches Z (1979) Issues in assessing the contribution of research and development to productivity growth. Bell J Econ 10:92–116

    Article  Google Scholar 

  • Griliches Z (1991) Patent statistics as economic indicators: a survey. NBER Working Papers No. 3301. National Bureau of Economic Research

  • Hausman JA (1978) Specification test in econometrics. Econometrica 46:1251–1271

    Article  Google Scholar 

  • Hausman JA, Hall BH, Griliches Z (1984) Econometric models for count data with an application to the patent-R&D relationship. Econometrica 51:909–938

    Article  Google Scholar 

  • Hoekman J, Frenken K, van Oort F (2009) The geography of collaborative knowledge production in Europe. Ann Reg Sci 43:721–738

    Article  Google Scholar 

  • Hoisl K (2007) Tracing mobile inventors: the causality between inventor mobility and inventor productivity. Res Policy 36:615–636

    Article  Google Scholar 

  • Hoisl K (2009) Does mobility increase the productivity of inventors? J Technol Transf 34:212–225

    Article  Google Scholar 

  • Jaffe AB (1986) Technological opportunity and Spillovers of R&D: evidence from firms’ patents, profits, and market value. Am Econ Rev 76:984–1001

    Google Scholar 

  • Jaffe AB (1989) Real effects of academic research. Am Econ Rev 79:957–970

    Google Scholar 

  • Jaffe AB, Trajtenberg M, Henderson R (1993) Geographic localisation of knowledge spillovers as evidenced by patent citations. Q J Econ 108:577–598

    Article  Google Scholar 

  • Jovanovic B (1979) Job matching and the theory of turnover. J Political Econ 87(5):972–990

    Article  Google Scholar 

  • Katz JS, Martin BR (1997) What is research collaboration? Res Policy 26:1–18

    Article  Google Scholar 

  • Kerr WR (2008) Ethnic scientific communities and international technology diffusion. Rev Econ Stat 90:518–537

    Article  Google Scholar 

  • Kroll H (2009) Spillovers and proximity in perspective: a network approach to improving the operationalisation of proximity. Working Papers Firms and Regions No. R2/2009, Fraunhofer ISI

  • Lambooy JG, Boschma RA (2001) Evolutionary economics and regional policy. Ann Reg Sci 35:113–133

    Article  Google Scholar 

  • Laudel G (2003) Studying the brain drain: can bibliometric methods help? Scientometrics 57:215–237

    Article  Google Scholar 

  • Lenzi C (2009) Patterns and determinants of skilled workers’ mobility: evidence from a survey of Italian inventors. Econ Innov New Technol 18:161–179

    Article  Google Scholar 

  • Liu P-W (1986) Human capital, job matching and earnings growth between jobs: an empirical analysis. Appl Econ 18:1135–1147

    Article  Google Scholar 

  • Lobo J, Strumsky D (2008) Metropolitan patenting, inventor agglomeration and social networks: a tale of two effects. J Urban Econ 63:871–884

    Article  Google Scholar 

  • Maggioni MA, Uberti TE (2008) Knowledge networks across Europe: which distance matters? Ann Reg Sci 43:691–720

    Article  Google Scholar 

  • Maggioni MA, Nosvelli M, Uberti TE (2007) Space versus networks in the geography of innovation: a European analysis. Pap Reg Sci 86:471–493

    Article  Google Scholar 

  • Martin P, Ottaviano G (1999) Growing locations: industry location in a model of endogenous growth. Eur Econ Rev 43(2):281–302

    Article  Google Scholar 

  • Maskell P, Bathelt H, Malmberg A (2006) Building global knowledge pipelines: the role of temporary clusters. Eur Plan Stud 14:997–1013

    Article  Google Scholar 

  • McCann P, Ortega-Argilés R (2011) Smart specialisation, regional growth and applications to EU cohesion policy. Document de treball de l’IEB 2011/14, Institut d’Economia de Barcelona

  • Miguélez E, Gómez-Miguélez IG (2011) Singling out individual inventors from patent data. IREA Working Paper 2011/05

  • Morrison A, Rabellotti R, Zirulia FL (2012) When do global pipelines enhance knowledge diffusion in clusters? Econ Geogr. doi:10.1111/j.1944-8287.2012.01167.x

  • Oettl A, Agrawal A (2008) International labor mobility and knowledge flow externalities. J Int Bus Stud 39(8):1242–1260

    Article  Google Scholar 

  • Owen-Smith J, Powell WW (2004) Knowledge networks as channels and conduits: the effects of spillovers in the Boston biotechnology community. Org Sci 15(1):5–21

    Article  Google Scholar 

  • Ponds R, Van Oort FG, Frenken K (2010) Innovation, spillovers and university-industry collaboration: an extended knowledge production function approach. J Econ Geogr 10(2):231–255

    Article  Google Scholar 

  • Powell S, Grodal WW (2005) Networks of innovators. In: Fagerberg J, Mowery DC, Nelson RR (eds) The Oxford handbook of innovation. Oxford University Press, Oxford

    Google Scholar 

  • Rodríguez-Pose A (1999) Innovation prone and innovation averse societies: economic performance in Europe. Growth Change 30:75–105

    Article  Google Scholar 

  • Rodríguez-Pose A, Crescenzi R (2008) Research and development, Spillovers, innovation systems, and the genesis of regional growth in Europe. Reg Stud 42:51–67

    Article  Google Scholar 

  • Romer PM (1986) Increasing returns and long-run growth. J Political Econ 94:1002–1037

    Article  Google Scholar 

  • Romer PM (1990) Endogenous technological change. J Political Econ 98:71–102

    Article  Google Scholar 

  • Rosen S (1972) Learning and expertise in the labor market. J Hum Resour 7:326–342

    Article  Google Scholar 

  • Rosenkopf L, Almeida P (2003) Overcoming local search through alliances and mobility. Manag Sci 49:751–766

    Article  Google Scholar 

  • Saxenian A (1994) Regional advantage. Culture and competition in Silicon Valley and route 128. Harvard University Press, Cambridge, MA

  • Saxenian A (2006) The new argonauts: regional advantage in a global economy. Harvard University Press, Cambridge, MA

    Google Scholar 

  • Schilling MA, Phelps CC (2007) Interfirm collaboration networks: the impact of large-scale network structure on firm innovation. Manag Sci 53(7):1113–1126

    Article  Google Scholar 

  • Scott J (2000) Social network analysis: a handbook. Sage, London

    Google Scholar 

  • Simonen J, McCann P (2008) Firm innovation: the influence of R&D cooperation and the geography of human capital inputs. J Urban Econ 64(1):146–154

    Article  Google Scholar 

  • Singh J (2005) Collaborative networks as determinants of knowledge diffusion patterns. Manag Sci 51: 56–70

    Article  Google Scholar 

  • Singh J, Agrawal AK (2011) Recruiting for ideas: how firms exploit the prior inventions of new hires. Manag Sci 57(1):129–150

    Article  Google Scholar 

  • Stephan P (1996) The economics of science. J Econ Lit 34(3):1199–1235

    Google Scholar 

  • Ter Wal ALJ, Boschma R (2009) Applying social network analysis in economic geography: framing some key analytic issues. Ann Reg Sci 43:739–756

    Article  Google Scholar 

  • Topel RH, Ward PW (1992) Job mobility and the careers of young men. Q J Econ 107(2):439–479

    Article  Google Scholar 

  • Uzzi B (1997) Social structure and competition in interfirm networks: the paradox of embeddedness. Adm Sci Q 42:35–67

    Article  Google Scholar 

  • Wasserman S, Faust K (1994) Social network analysis: methods and applications. Cambridge University Press, Cambridge

    Book  Google Scholar 

  • Watts DJ, Strogatz SH (1998) Collective dynamics of ’small-world’ networks. Nature 393:440–442

    Article  Google Scholar 

  • Zucker LG, Darby MR, Armstrong J (1998) Geographically localized knowledge: Spillovers or markets? Econ Inq 36(1):65–86

    Article  Google Scholar 

Download references

Acknowledgments

We acknowledge financial support from the Ministerio de Ciencia e Innovación, ECO2011-30260-C03-03 and the project ‘Knowledge, Innovation, Territory (KIT)’—Programme ESPON 2013 (2010–2013). The views expressed in this article are those of the authors and do not necessarily reflect those of the World Intellectual Property Organization. We are very grateful to CRENoS (University of Cagliari and University of Sassari) for providing us with data on patents, R&D and human capital, and also to two anonymous referees for their useful comments. However, any mistakes or omissions are ours.

Author information

Authors and Affiliations

  1. Economics and Statistics Division, World Intellectual Property Organization, Geneva, Switzerland

    Ernest Miguélez

  2. AQR-IREA, University of Barcelona, Barcelona, Spain

    Ernest Miguélez & Rosina Moreno

Authors
  1. Ernest Miguélez
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Rosina Moreno
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Rosina Moreno.

Rights and permissions

Reprints and Permissions

About this article

Cite this article

Miguélez, E., Moreno, R. Skilled labour mobility, networks and knowledge creation in regions: a panel data approach. Ann Reg Sci 51, 191–212 (2013). https://doi.org/10.1007/s00168-012-0526-0

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s00168-012-0526-0

JEL Classification

  • J61
  • O31
  • O33
  • R1