Innovation and Regional Technological Convergence: Theory and Evidence PDF
Preview Innovation and Regional Technological Convergence: Theory and Evidence
SpringerBriefs in Regional Science Tomasz Kijek · Arkadiusz Kijek · Anna Matras-Bolibok Innovation and Regional Technological Convergence Theory and Evidence SpringerBriefs in Regional Science SeriesEditors HenkFolmer,UniversityofGroningen,Groningen,TheNetherlands MarkPartridge,OhioStateUniversity,Columbus,USA DanielP.McMillen,UniversityofIllinois,Urbana,USA AndrésRodríguez-Pose,LondonSchoolofEconomics,London,UK HenryW.C.Yeung,NationalUniversityofSingapore,Singapore,Singapore SpringerBriefs present concise summaries of cutting-edge research and practical applicationsacrossawidespectrumoffields.Featuringcompact,authoredvolumes of 50 to 125 pages, the series covers a range of content from professional to academic.SpringerBriefsinRegionalScienceshowcaseemergingtheory,empirical researchandpracticalapplication,lecturenotesandreviewsinspatialandregional sciencefromaglobalauthorcommunity. Alltitlesinthisbookseriesarepeer-reviewed.ThisseriesisindexedinSCOPUS. (cid:129) (cid:129) Tomasz Kijek Arkadiusz Kijek Anna Matras-Bolibok Innovation and Regional Technological Convergence Theory and Evidence TomaszKijek ArkadiuszKijek DepartmentofMicroeconomics DepartmentofStatisticsandEconometrics andAppliedEconomics MariaCurie-SkłodowskaUniversity MariaCurie-SkłodowskaUniversity Lublin,Poland Lublin,Poland AnnaMatras-Bolibok DepartmentofMicroeconomics andAppliedEconomics MariaCurie-SkłodowskaUniversity Lublin,Poland ThisworkwassupportedbyNationalScienceCentre,Poland(2017/27/B/HS4/00893) ISSN2192-0427 ISSN2192-0435 (electronic) SpringerBriefsinRegionalScience ISBN978-3-031-24530-5 ISBN978-3-031-24531-2 (eBook) https://doi.org/10.1007/978-3-031-24531-2 ©TheAuthor(s)2023.Thisbookisanopenaccesspublication. OpenAccessThisbookislicensedunderthetermsoftheCreativeCommonsAttribution4.0International License (http://creativecommons.org/licenses/by/4.0/), which permits use, sharing, adaptation, distribution and reproductionin any mediumor format, as long as you give appropriate credit to the originalauthor(s)andthesource,providealinktotheCreativeCommonslicenseandindicateifchanges weremade. Theimagesorotherthirdpartymaterialinthisbookareincludedinthebook’sCreativeCommonslicense, unlessindicatedotherwiseinacreditlinetothematerial.Ifmaterialisnotincludedinthebook’sCreative Commonslicenseandyourintendeduseisnotpermittedbystatutoryregulationorexceedsthepermitted use,youwillneedtoobtainpermissiondirectlyfromthecopyrightholder. Theuseofgeneraldescriptivenames,registerednames,trademarks,servicemarks,etc.inthispublication doesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexemptfromtherelevant protectivelawsandregulationsandthereforefreeforgeneraluse. Thepublisher,theauthors,andtheeditorsaresafetoassumethattheadviceandinformationinthisbook arebelievedtobetrueandaccurateatthedateofpublication.Neitherthepublishernortheauthorsorthe editorsgiveawarranty,expressedorimplied,withrespecttothematerialcontainedhereinorforany errorsoromissionsthatmayhavebeenmade.Thepublisherremainsneutralwithregardtojurisdictional claimsinpublishedmapsandinstitutionalaffiliations. ThisSpringerimprintispublishedbytheregisteredcompanySpringerNatureSwitzerlandAG Theregisteredcompanyaddressis:Gewerbestrasse11,6330Cham,Switzerland Acknowledgments The authors thank Hugo Hollanders from UNU-MERIT, Maastricht University for providing access to the latest and historical datasets of the Regional Innovation Scoreboard. This book comes out as a part of the research project financed by the National ScienceCentre,Polandonthebasisofdecisionnumber2017/27/B/HS4/00893. v Contents 1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2 InnovationandRegionalDevelopment. . . . . . . . . . . . . . . . . . . . . . . . 5 2.1 SpatialAspectsofInnovation. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2.2 Knowledge-BasedFoundationsofRegionalDevelopment. . . . . . . . 10 2.3 PolicyFrameworkofInnovation-DrivenRegionalDevelopment intheEuropeanUnion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 3 RegionalTechnologicalConvergence:PatternsandDeterminants. . . 25 3.1 TheoreticalBackgroundandTypesofConvergence. . . . . . . . . . . . 25 3.2 RoleofTFPinMeasuringTechnologicalConvergence. . . . . . . . . . 28 3.3 InnovationasaSourceofTechnologicalConvergence. . . . . . . . . . 37 References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 4 EmpiricalAnalysisofTechnologicalConvergenceintheEuropean RegionalArea. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 4.1 DataandMethods. . . .. . . .. . . . .. . . .. . . .. . . . .. . . .. . . .. . . 47 4.2 SpatialDistributionofTFPAcrosstheEURegions. . . . . . . . . . . . 54 4.3 AnalysisofRegionalTechnologicalConvergence. . . . . . . . . . . . . . 59 4.4 ImpactofInnovationActivitiesonProcessesofRegional TechnologicalConvergence. . . .. . . . .. . . . .. . . .. . . . .. . . .. . . 66 References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 5 Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 vii Chapter 1 Introduction The concept of income convergence has drawn the attention of many economists involved in the growth debate (Alataş, 2021). Recent theories of growth and empiricalstudiessuggestthatheterogeneitywithrespecttotechnologicalconditions ingeneralandtotalfactorproductivity—TFPinparticularareidentifiedasthemost decisive factors for the rate of income convergence of countries (Islam, 2003). Apparently, depending on whether initial TFP differences decrease or increase over time, income convergence or divergence may be a matter of fact. This has directedresearchers’attentiontotheconceptoftechnological(TFP)convergence. Although many empirical studies try to find the answer to the question of technological convergence at the country level (Dowrick & Nguyen, 1989; Wolf, 1991;Dougherty&Jorgenson,1997;Tebaldi,2016;Rath&Akram,2019),regional technological convergence is the research area of relatively modest exploration. However, this situation started to change, since the importance of technological convergence and its determinants have progressively gained attention in both the scientific and the policy domains at the regional level (Rodil-Marzábal & Vence- Deza,2020).InthecontextoftheLisbonAgenda(EuropeanCouncil,2000)andthe Europe 2020 strategy (Commission of the European Communities, 2010) goals of makingEuropeanditsregionsthemostcompetitiveanddynamicknowledge-based economiesintheworld,itseemscrucialtofindwhetherinnovation,regardedasthe maindriverofregionalTFPgrowth(Dettorietal.,2012),canstimulatetechnolog- icalconvergenceandunderwhatconditions. Empirical findings suggest that innovation can lead to both technological con- vergence and divergence processes across regional economies (Walker & Storper, 1989; Verspagen, 2010). In the former, thanks to the diffusion of knowledge and innovation,itispossiblefortheregionswhicharetechnologicallylaggingbehindto catchupwiththeregionswithahigherleveloftechnologicaladvancement.Onthe other hand, innovations provide additional technological rent and allow leaders to speed up inthetechnology race. Due tothespecificity ofknowledge, including its cumulativenature,therelationsbetweenthecatching-upandspeeding-upprocesses ©TheAuthor(s)2023 1 T.Kijeketal.,InnovationandRegionalTechnologicalConvergence,SpringerBriefs inRegionalScience,https://doi.org/10.1007/978-3-031-24531-2_1 2 1 Introduction dependontheinitialinnovativepotentialoftheregionsandtheirabsorptivecapac- ities(Dosi,1988;Verspagen,2010;Roper&Love,2006). From the theoretical perspective, TFP catching-up process can be explained by the concept of ‘advantage of backwardness’ (Vu & Asongu, 2019) and the semi- endogenousR&D-basedgrowthmodelsandtheirextensionstotheregionalframe- work(Jones,1995;Kortum,1997;Fukuda,2017).Ontheotherhand,theconclusion drawn from the first generation of R&D-based endogenous growth models (Segerstrometal.,1990;Grossman&Helpman,1991;Baldwinetal.,2001)suggest that a TFP gap between technological leaders and technological followers may widen by R&D investments. Interestingly, the multiple equilibria Schumpeterian R&Dmodels(Howitt&Mayer-Foulkes,2005)permittheconclusionthatdifferent strategiesfortechnologycreationandadoptioninduceconvergenceclubsformation inTFP.Regionalheterogeneityoftechnologylevelandtheexistenceofconvergence clubs may be also explained by local technological or knowledge spillovers and regional innovation and technological policies, which become more similar over timewithincertaingroups. ThepossiblemultimodalityofthedistributionofTFPmaybealsoanchoredinthe theory of innovation geography (Feldman & Kogler, 2010). In the spatial context, thelocalgrowthdependsontheamountofinnovationactivitywhichiscarriedout locally, and possibly on the ability to take advantage of external technological achievements.Attheregionallevel,technologyspillovershaveanimportantspatial component, as it has been argued that spillovers do not travel easily, so that the performanceofanindividualregionisinfluencedbyitsgeographicallocation.The existenceoflocalizedspilloversoftechnologicalknowledgeplaysasignificantrole in the regional technological convergence process as the propensity to innovate of each region does depend on that of the surrounding areas. Allowing unequal distribution of TFP, special attention should be paid to the localized spreading of innovationactivities. Inthelightofthepresentedconsiderations,themainaimofthisbookistoexplore the role of innovation in technological convergence in the European regional area. ThetheoreticalframeworkoftheanalysesispresentedinChaps.2and3.Theformer focusesonthespatialaspectsofinnovationactivities,knowledge-basedfoundation ofregionaldevelopmentandpolicyframeworkofinnovation-drivengrowthofEU regions. The latter presents the concept of convergence with special reference to technologicalconvergence.Importantly,itgivesinsightsintotheroleofinnovation in technological convergence from the point of view of alternative R&D-based growth theories. In turn, Chap. 4 contains the methodology of research and the results of analyses. We test stochastic convergence, absolute and conditional β-convergence,aswellasclubconvergence.Inouranalysesweconsidertechnology andinnovationspilloversandtheirimpactontherateoftechnologicalconvergence. Such approach to testing technological convergence in the European regional area enables us possible to capture a comprehensive picture of the role of innovation activitiesinshapingTFPtrajectories. We believe that our book will be appealing to researchers interested in regional development,economicandspatialaspectsofscienceandtechnologyprogress,and References 3 economicsofinnovationandknowledge.Practitionersandpolicy-makersmayalso find it useful as a source of recent results in economic cohesion and technological convergence. References Alataş,S.(2021).RevisitingtheSolowgrowthmodel:Newempiricalevidenceontheconvergence debate. Journal of Economic and Administrative Sciences. https://doi.org/10.1108/JEAS-02- 2021-0035 Baldwin, R. E., Martin, P., & Ottaviano, G. I. (2001). Global income divergence, trade and industrialisation:Thegeographyofgrowthtake-offs.JournalofEconomicGrowth,6(1),5–37. CommissionoftheEuropeanCommunities.(2010).Europe2020.Astrategyforsmart,suitable andinclusivegrowth.COM(2010)2020.EuropeanCommission. Dettori,B.,Marrocu,E.,&Paci,R.(2012).Totalfactorproductivity,intangibleassetsandspatial dependenceintheEuropeanregions.RegionalStudies,46(10),1401–1416.https://doi.org/10. 1080/00343404.2010.529288 Dosi, G. (1988). Sources, procedures, and microeconomic effects of innovation. Journal of EconomicLiterature,26(3),1120–1171. Dougherty,C.,&Jorgenson,D.W.(1997).Thereisnosilverbullet:Investmentandgrowthinthe G7. National Institute Economic Review, 162(1), 57–74. https://doi.org/10.1177/ 002795019716200105 Dowrick,S.,&Nguyen,D.(1989).OECDcomparativeeconomicgrowth1950–85:Catch-upand convergence.AmericanEconomicReview,79(5),1010–1030. EuropeanCouncil.(2000).PresidencyconclusionsLisbonEuropeancouncil.23–24March2000 (no.100/1/00).EuropeanCouncil. Feldman,M.P.,&Kogler,D.F.(2010).Stylizedfactsinthegeographyofinnovation.InR.Hall& N.Rosenberg(Eds.),Handbookoftheeconomicsofinnovation(Vol.1,pp.381–410).Elsevier. https://doi.org/10.1016/s0169-7218(10)01008-7 Fukuda, K. (2017). The effects of globalization on regional inequality in a model of semi- endogenous growth and footloose capital. Asia-Pacific Journal of Accounting & Economics, 24(1–2),95–105.https://doi.org/10.1080/16081625.2015.1062243 Grossman,G.M.,&Helpman,E.(1991).Innovationandgrowthintheglobaleconomy.MITPress. Howitt,P.,&Mayer-Foulkes,D.(2005).R/D,implementation,andstagnation:ASchumpeterian theoryofconvergenceclubs.JournalofMoney,Credit,andBanking,37(1),147–177.https:// doi.org/10.1353/mcb.2005.0006 Islam,N.(2003).Productivitydynamicsinalargesampleofcountries:Apanelstudy.Reviewof IncomeandWealth,49(2),247–272. Jones,C.(1995).R&D-basedmodelsofeconomicgrowth.JournalofPoliticalEconomy,103(4), 759–784. Kortum, S. (1997). Research, patenting, and technological change. Econometrica, 65(6), 1389–1419.https://doi.org/10.2307/2171741 Rath, B. N., & Akram, V. (2019). A reassessment of total factor productivity convergence: Evidence from cross-country analysis. Economic Modelling, 82, 87–98. https://doi.org/10. 1016/j.econmod.2019.08.002 Rodil-Marzábal,Ó.,&Vence-Deza,X.(2020).Regionalinnovationsystemsandregionaldispar- ities in the Euro area: Insights for regional innovation policy. In M. González-López & B. Asheim (Eds.), Regions andinnovation policies in Europe (pp. 139–161). Edward Elgar. https://doi.org/10.4337/9781789904161.00012
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