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Disentangling regional innovation capability: what really matters?

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  • Roberto Ganau
  • Roberto Grandinetti

Abstract

Where does innovation come from? And do all regions innovate similarly? We deal with these questions by highlighting the complexity of the concepts of innovation capability and performance, and by testing their association at the European Union regional level. We disentangle inputs of innovation capability, and consider regional heterogeneity in institutional quality, to understand the relative endowment of what innovation inputs is associated with higher relative innovation performance. We find that ‘formal’ inputs – public and business R&D expenditure – do not work unconditionally and everywhere, and that less ‘formal’ ones – e.g., non-R&D expenditure and firms collaborating for innovation – matter particularly in regions with relative low-quality institutions. Moreover, institutional quality emerges as an innovation productivity-enhancing factor.

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  • Roberto Ganau & Roberto Grandinetti, 2021. "Disentangling regional innovation capability: what really matters?," Industry and Innovation, Taylor & Francis Journals, vol. 28(6), pages 749-772, July.
    • Handle: RePEc:taf:indinn:v:28:y:2021:i:6:p:749-772
    DOI: 10.1080/13662716.2021.1904841
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    Cited by:

    1. Keyan Zheng & Fagang Hu & Yaliu Yang, 2023. "Data-Driven Evaluation and Recommendations for Regional Synergy Innovation Capability," Sustainability, MDPI, vol. 15(14), pages 1-21, July.
    2. Rosalia Castellano & Gaetano Musella & Gennaro Punzo, 2023. "Does context matter? Exploring the effects of productive structures on the relationship between innovation and workforce skills’ complementarity," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(3), pages 1991-2011, June.
    3. Mónica Espinosa-Blasco & Gabriel I. Penagos-Londoño & Felipe Ruiz-Moreno & María J. Vilaplana-Aparicio, 2024. "New Insights on the Allocation of Innovation Subsidies: A Machine Learning Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 2704-2725, March.
    4. Rosalia Castellano & Gaetano Musella & Gennaro Punzo, 2024. "How Do Agglomeration Externalities and Workforce Skills Drive Innovation? Empirical Evidence from Italy," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 6737-6760, June.
    5. Roberto Ganau & Roberto Grandinetti, 2022. "La capacit? innovativa delle regioni: riflessioni sul nuovo "triangolo industriale"," ECONOMIA E SOCIET? REGIONALE, FrancoAngeli Editore, vol. 0(1), pages 105-125.
    6. Weilong Wang & Jianlong Wang & Shaersaikai Wulaer & Bing Chen & Xiaodong Yang, 2021. "The Effect of Innovative Entrepreneurial Vitality on Economic Resilience Based on a Spatial Perspective: Economic Policy Uncertainty as a Moderating Variable," Sustainability, MDPI, vol. 13(19), pages 1-23, September.

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