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Knowledge spillovers and economic performance of firms located in depressed areas: does geographical proximity matter?

Author

Listed:
  • Liliana Araújo

    (Faculdade de Economia, Universidade do Porto)

  • Sandra T. Silva

    (CEF.UP, Faculdade de Economia, Universidade do Porto)

  • Aurora A.C. Teixeira

    (CEF.UP, Faculdade de Economia, Universidade do Porto; INESC Porto, OBEGEF)

Abstract

Extensive literature on the contribution of knowledge spillovers to growth and development at the regional level exists but these studies mainly features regions characterised by a high level of economic development. This paper assesses the importance of knowledge spillovers for firms located in relatively small, peripheral and economically depressed areas. Based on both primary (direct surveys to 257 firms) and secondary data, we concluded that the more relevant knowledge spillovers for firms located in a depressed region of northern Portugal (Vale do Ave) are inter-regional and international. This suggests that the contacts established with sources of knowledge from outside the region under analysis and abroad are crucial for the performance of firms. Despite the innovative intra-industry environment impacts positively on the economic performance of firms, our results convey that in such peripheral and depressed region geographical proximity is not critical for the firms’ economic performance.

Suggested Citation

  • Liliana Araújo & Sandra T. Silva & Aurora A.C. Teixeira, 2013. "Knowledge spillovers and economic performance of firms located in depressed areas: does geographical proximity matter?," FEP Working Papers 488, Universidade do Porto, Faculdade de Economia do Porto.
    • Handle: RePEc:por:fepwps:488
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    References listed on IDEAS

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    Cited by:

    1. Santos, Domingos & Simões, Maria João, 2014. "Regional innovation systems in Portugal: a critical evaluation," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 28, pages 37-56.
    2. Zwolińska-Ligaj, Magdalena Anna, 2021. "Possibilities Of Implementing The Smart Development Concept In Rural Areas From A Business Perspective. The Example Of Eastern Poland," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2021(1).

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    More about this item

    Keywords

    Depressed areas; Evolutionary Economic Geography; Knowledge Spillovers; Innovation.;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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