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Externalities and the UK Regional Divide in Innovative Behaviour

Author

Listed:
  • Suma Athreye
  • David Keeble

Abstract

This empirical paper investigates the impact of different sources of increasing returns on firm innovative behaviour in two regions of the UK in the period of the 1990s when the new economy is believed to have emerged. We pay particular attention to the impact of the intermediation in the form of the emergence of a market for specialised business services as a possible externality that influences regional innovation. Other influences on regional innovation such as knowledge spillovers due to public R&D in UK counties and dynamic economics to scale due to learning weithin a firm are also considered.

Suggested Citation

  • Suma Athreye & David Keeble, 2001. "Externalities and the UK Regional Divide in Innovative Behaviour," Open Discussion Papers in Economics 35, The Open University, Faculty of Social Sciences, Department of Economics.
    • Handle: RePEc:opn:wpaper:35
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    More about this item

    Keywords

    Increasing returns and innovation; specialised markets; public R&D; innovation by firms; regional innovation; regional development;
    All these keywords.

    JEL classification:

    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • H4 - Public Economics - - Publicly Provided Goods
    • L8 - Industrial Organization - - Industry Studies: Services

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