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articles: Is R&D investment in lagging areas of Europe worthwhile? Theory and empirical evidence

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  • Andrés Rodríguez-Pose

    (Department of Geography and Environment, London School of Economics, Houghton Street, London WC2A 2AE, UK)

Abstract

Is R&D investment in lagging areas worthwhile? There is no simple answer, nor is there universal theoretical agreement on the question. The Schumpeterian strand of the endogenous growth approach highlights the advantages of spatially concentrating the research and development (R&D) effort in a few areas, in order to maximise external economies and technological spillovers. Innovation is then expected to spill over from these technologically advanced areas into neighbouring regions . The neoclassical view, in contrast, considers that decreasing returns render investment in core areas increasingly less efficient, and makes investment in peripheries more effective. The regional policy view holds that public investment in R&D in lagging regions triggers economic convergence, because it limits congestion in the centre, helps to keep talent, and generates spin-offs in lagging areas. This article surveys these strands and highlights the advantages and disadvantages of investing in R& ;D in lagging regions. I then turn to the evolution of R&D investment across regions in Western Europe.

Suggested Citation

  • Andrés Rodríguez-Pose, 2001. "articles: Is R&D investment in lagging areas of Europe worthwhile? Theory and empirical evidence," Papers in Regional Science, Springer;Regional Science Association International, vol. 80(3), pages 275-295.
    • Handle: RePEc:spr:presci:v:80:y:2001:i:3:p:275-295
    Note: Received: 7 October 2000
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    Citations

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    Cited by:

    1. Balland, Pierre-Alexandre & Boschma, Ron, 2022. "Do scientific capabilities in specific domains matter for technological diversification in European regions?," Research Policy, Elsevier, vol. 51(10).
    2. Hervás-Oliver, José-Luis & Parrilli, Mario Davide & Rodríguez-Pose, Andrés & Sempere-Ripoll, Francisca, 2021. "The drivers of SME innovation in the regions of the EU," Research Policy, Elsevier, vol. 50(9).
    3. López-Rodríguez , Jesús & Faíña, Andrés, 2007. "Regional Wage Disparities in Europe: What role for Market Access?," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 11, pages 5-23.
    4. O. V. Kuznetsova, 2023. "Rating of Scientific and Technological Development in Regions: Approaches, Results, and Challenges," Studies on Russian Economic Development, Springer, vol. 34(4), pages 492-499, August.
    5. Lauma Muizniece & Aleksandrs Cepilovs, 2017. "Supporting University Technology Transfer - Struggles And Barriers In Latvia," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 26(1), pages 321-342, june.
    6. Rosina Moreno & Raffaele Paci & Stefano Usai, 2004. "Innovation and production clusters in Europe," ERSA conference papers ersa04p587, European Regional Science Association.
    7. Paolo Guerrieri & Simona Iammarino, 2007. "Dynamics of Export Specialization in the Regions of the Italian Mezzogiorno: Persistence and Change," Regional Studies, Taylor & Francis Journals, vol. 41(7), pages 933-948.
    8. Hyunha Shin & Dieter F. Kogler & Keungoui Kim, 2024. "The relevance of scientific knowledge externalities for technological change and resulting inventions across European metropolitan areas," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 44(2), pages 193-209, June.
    9. Xing Gao & Keyu Zhai, 2021. "Spatial Mechanisms of Regional Innovation Mobility in China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 156(1), pages 247-270, July.
    10. Ugo Fratesi, 2003. "Innovation Diffusion and the Evolution of Regional Disparities," ERSA conference papers ersa03p327, European Regional Science Association.
    11. Andrés Rodríguez‐Pose & Callum Wilkie, 2019. "Innovating in less developed regions: What drives patenting in the lagging regions of Europe and North America," Growth and Change, Wiley Blackwell, vol. 50(1), pages 4-37, March.
    12. Fratesi, Ugo, 2007. "The Spatial Diffusion of Innovations and the Evolution of Regional Disparities," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 11, pages 131-160.
    13. Darie GAVRILUT & Daniel BADULESCU & Jamila JAGANJAC, 2023. "The Role Of R&D Sector On Fostering Economic Growth. Insights From Romania," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 17(1), pages 405-417, November.
    14. Gündüz Atalik & Seda Kundak, 2004. "Effects of innovation diffusion on the development level for some European regions in the expansion period of the European Union," ERSA conference papers ersa04p30, European Regional Science Association.

    More about this item

    Keywords

    R&D; technology; spillovers; economic growth; regions; Western Europe;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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