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What determines the efficiency of regional innovation systems?

Author

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  • Michael Fritsch

    (University of Jena, School of Busniess and Economics, and Institute for Economic Research (DIW Berlin))

  • Viktor Slavtchev

    (University of Jena, School of Busniess and Economics)

Abstract

We assess the efficiency of regional innovation systems (RIS) in Germany by means of a knowledge production function. This function relates private sector research and development (R&D) activity in a region to the number of inventions that have been registered by residents of that region. Different measures and estimation approaches lead to rather similar assessments. We find that both spillovers within the private sector as well as from universities and other public research institutions have a positive effect on the efficiency of private sector R&D in the respective region. It is not the mere presence and size of public research institutions, but rather the intensity of interactions between private and public sector R&D that leads to high RIS efficiency. We find that relationship between the diversity of a regions’ industry structure and the efficiency of its innovation system is inversely u-shaped. Regions dominated by large establishments tend to be less efficient than regions with a lower average establishment size.

Suggested Citation

  • Michael Fritsch & Viktor Slavtchev, 2007. "What determines the efficiency of regional innovation systems?," Jena Economics Research Papers 2007-006, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2007-006
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    2. Alexandra Schröter, 2008. "Perspektiven der Innovationspolitik in den neuen Bundesländern," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 15(02), pages 40-52, 04.
    3. Patrycjusz Zarębski & Dominik Katarzyński, 2023. "A Theoretical Framework for a Local Energy Innovation System Based on the Renewable Energy Case of Poland," Energies, MDPI, vol. 16(9), pages 1-24, April.
    4. Sun, Xinyu & Yan, Sen & Liu, Tao & Wang, Jiayin, 2023. "The impact of high-speed rail on urban economy: Synergy with urban agglomeration policy," Transport Policy, Elsevier, vol. 130(C), pages 141-154.
    5. Concepción Rubio‐Picón & Francisco Velasco‐Morente & Encarnación Ramos‐Hidalgo & María A. Agustí, 2023. "The effect of innovation efficiency management on performance: Differences according to organizational size," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 336-358, January.
    6. Michael Fritsch & Viktor Slavtchev, 2007. "Universities and Innovation in Space," Industry and Innovation, Taylor & Francis Journals, vol. 14(2), pages 201-218.
    7. Chen Kaihua & Kou Mingting, 2014. "Staged efficiency and its determinants of regional innovation systems: a two-step analytical procedure," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(2), pages 627-657, March.
    8. Mingting Kou & Yi Zhang & Yu Zhang & Kaihua Chen & Jiancheng Guan & Senmao Xia, 2020. "Does gender structure influence R&D efficiency? A regional perspective," Scientometrics, Springer;Akadémiai Kiadó, vol. 122(1), pages 477-501, January.
    9. Kaihua Chen & Jiancheng Guan, 2012. "Measuring the Efficiency of China's Regional Innovation Systems: Application of Network Data Envelopment Analysis (DEA)," Regional Studies, Taylor & Francis Journals, vol. 46(3), pages 355-377, April.
    10. Michael Fritsch, 2008. "How does new business formation affect regional development? Introduction to the special issue," Small Business Economics, Springer, vol. 30(1), pages 1-14, January.
    11. Chen, Kaihua & Guan, Jiancheng, 2011. "Mapping the functionality of China's regional innovation systems: A structural approach," China Economic Review, Elsevier, vol. 22(1), pages 11-27, March.
    12. Jiancheng Guan & Kaihua Chen, 2010. "Modeling macro-R&D production frontier performance: an application to Chinese province-level R&D," Scientometrics, Springer;Akadémiai Kiadó, vol. 82(1), pages 165-173, January.
    13. Tom Broekel & Thomas Brenner, 2007. "Measuring Regional Innovativeness - A Methodological Discussion and an Application to One German Industry," Jena Economics Research Papers 2007-065, Friedrich-Schiller-University Jena.

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    More about this item

    Keywords

    Knowledge; innovation; technical efficiency; spillovers; patents; regional analysis;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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