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What Does Endogenous Growth Theory Tell about Regional Economies? Empirics of R&D Worker-based Productivity Growth

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  • Hiro Izushi

Abstract

Izushi H. What does endogenous growth theory tell about regional economies? Empirics of R&D worker-based productivity growth, Regional Studies. Endogenous growth theory emerged in the 1990s as 'new growth theory' accounting for technical progress in the growth process. This paper examines the role of research and development (R&D) workers underlying the Romer model (1990) and its subsequent modifications, and compares it with a model based on the accumulation of human capital engaged in R&D. Cross-section estimates of the models against productivity growth of European regions in the 1990s suggest that each R&D worker has a unique set of knowledge while his/her contributions are enhanced by knowledge sharing within a region as well as spillovers from other regions in proximity. [image omitted] Izushi H. Quelles sont les lecons a tirer de la theorie de croissance endogene pour ce qui est des economies regionales?, Regional Studies. La theorie de croissance endogene a vu le jour aux annees 1990 comme 'theorie de croissance nouvelle' qui expliquait le role du progres technique dans le processus de croissance. Cet article cherche a examiner l'importance des travailleurs R et D, ce qui sous-tend le modele Romer (1990) et ses modifications ulterieures, et le compare a un modele base sur l'accumulation du capital humain dans la R et D. Des estimations transversales des modeles, faites en fonction de la croissance de la productivite des regions d'Europe aux annees 1990, laissent supposer que chaque travailleur R et D est dote d'un ensemble de connaissance unique, alors que ses apports sont augmentes par le partage de la connaissance au sein d'une region aussi bien que par les retombees en provenance des autres regions a proximite. Theorie de croissance endogene Retombees de connaissance Croissance de la productivite Progres technique Recherche et Developpement (R et D) Economie basee sur la connaissance Izushi H. Was sagt die Theorie des endogenen Wachstums uber regionale Wirtschaften aus? Empirische Belege des Produktivitatswachstums von Arbeitnehmern im Bereich Forschung und Entwicklung, Regional Studies. Die Theorie des endogenen Wachstums entstand in den neunziger Jahren des 20. Jahrhunderts als ,neue Wachstumstheorie' zur Erklarung des technischen Fortschritts im Wachstumsprozess. In diesem Beitrag wird die Rolle von Arbeitnehmern im Bereich Forschung und Entwicklung im Rahmen des Romer-Modells (1990) sowie seiner spateren Anderungen untersucht und mit einem Modell verglichen, das auf der Ansammlung von mit Forschung und Entwicklung befasstem Humankapital beruht. Querschnittsschatzungen der Modelle im Vergleich zum Produktivitatswachstum in den europaischen Regionen wahrend der neunziger Jahre lassen darauf schliessen, dass jeder Arbeitnehmer im Bereich Forschung und Entwicklung uber einzigartiges Wissen verfugt, wahrend seine Beitrage durch die Wissensweitergabe innerhalb einer Region sowie durch Ubertragungen von anderen Regionen in der Nahe verbessert werden. Theorie des endogenen Wachstums Wissensubertragung Produktivitatswachstum Technischer Fortschritt Forschung und Entwicklung (F&E) Wissensbasierte Wirtschaft Izushi H. ¿Que dice la teoria del crecimiento endogeno sobre las economias regionales? Datos empiricos sobre el crecimiento de la productividad entre trabajadores de I + D), Regional Studies. La teoria del crecimiento endogeno surgio en la decada de los noventa como una 'nueva teoria del crecimiento' para explicar el papel del progreso tecnico en el proceso del crecimiento. En este articulo se analiza el rol de los trabajadores de I + D bajo el modelo Romer (1990) y sus posteriores modificaciones, comparandolo con un modelo basado en la acumulacion de capital humano involucrado en I + D. Los calculos transversales de los modelos en comparacion con el crecimiento de la productividad en las regiones europeas en los noventa indican que cada trabajador de I + D posee una serie de conocimientos especiales mientras que su contribucion es aumentada por el conocimiento compartido dentro de una region asi como los desbordamientos de otras regiones proximas. Teoria del crecimiento endogeno Desbordamientos de conocimiento Crecimiento de la productividad Progreso tecnico Investigacion y Desarrollo (I + D) Economia basada en el conocimiento

Suggested Citation

  • Hiro Izushi, 2008. "What Does Endogenous Growth Theory Tell about Regional Economies? Empirics of R&D Worker-based Productivity Growth," Regional Studies, Taylor & Francis Journals, vol. 42(7), pages 947-960.
  • Handle: RePEc:taf:regstd:v:42:y:2008:i:7:p:947-960
    DOI: 10.1080/00343400701541847
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    References listed on IDEAS

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    1. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119.
    2. Quah, Danny, 1999. "Cross-Country Growth Comparison: Theory to Empirics," CEPR Discussion Papers 2294, C.E.P.R. Discussion Papers.
    3. Griffith, Daniel A. & Layne, Larry J., 1999. "A Casebook for Spatial Statistical Data Analysis: A Compilation of Different Thematic Data Sets," OUP Catalogue, Oxford University Press, number 9780195109580.
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    1. Gömleksiz, Mustafa & Özsahin, Serife, . "The Regional Dynamics of Economic Growth: Evidence from GMM Estimation in Turkey," Asian Journal of Applied Economics, Kasetsart University, Center for Applied Economics Research, vol. 26(1).
    2. Michael Funke & Hao Yu, 2009. "Economic Growth Across Chinese Provinces: In Search of Innovation-Driven Gains," Quantitative Macroeconomics Working Papers 20909, Hamburg University, Department of Economics.
    3. repec:zbw:bofitp:2009_010 is not listed on IDEAS
    4. Robert Huggins & Hiro Izushi, 2013. "Knowledge-based Development in Leading Regions across the Globe: An Exploratory Analysis of the co-Evolution of Resources, Capabilities and Outputs," Urban Studies, Urban Studies Journal Limited, vol. 50(5), pages 1030-1048, April.
    5. Jesus Felipe & John McCombie, 2012. "Problems with Regional Production Functions and Estimates of Agglomeration Economies: A Caveat Emptor for Regional Scientists," Economics Working Paper Archive wp_725, Levy Economics Institute.
    6. Funke, Michael & Yu, Hao, 2009. "Economic growth across Chinese provinces: insearch of innovation-driven gains," BOFIT Discussion Papers 10/2009, Bank of Finland Institute for Emerging Economies (BOFIT).

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