The Geography of Knowledge Spillovers Between High-Technology Firms in Europe: Evidence from a Spatial Interaction Modeling Perspective

The focus in this article is on knowledge spillovers between high-technology firms in Europe, as captured by patent citations. The European coverage is given by patent applications at the European Patent Office that are assigned to high-technology firms located in the EU-25 member states (except Cyprus and Malta), the two accession countries Bulgaria and Romania, and Norway and Switzerland. By following the paper trail left by citations between these high-technology patents we adopt a Poisson spatial interaction modeling perspective to identify and measure spatial separation effects to interregional knowledge spillovers. In doing so we control for technological proximity between the regions, as geographical distance could be just proxying for technological proximity. The study produces prima facie evidence that geography matters. First, geographical distance has a significant impact on knowledge spillovers, and this effect is substantial. Second, national border effects are important and dominate geographical distance effects. Knowledge flows within European countries more easily than across. Not only geography, but also technological proximity matters. Interregional knowledge flows are industry specific and occur most often between regions located close to each other in technological space.     

SOMETIMES CLOSE IS GOOD ENOUGH: THE VALUE OF NEARBY ENVIRONMENTAL AMENITIES*

ABSTRACT An extensive empirical literature exists, showing that variations in region‐specific amenities can account for persistent differences in real wages across regions. However, this literature has considered only amenities in the same location as the household. This paper argues that environmental amenities at some distance from but accessible to urban areas may lead to negative compensating wage differentials. We use a general equilibrium framework and data from the 1995 Current Population Survey to calculate implicit amenity prices based on measures of distance to environmental amenities. Our results suggest that amenities outside the metropolitan area do generate compensating wage differentials, as workers are willing to accept lower wages to live in accessible proximity to “nice” places. This implies that these places provide a positive externality to those communities that find them accessible. The estimated effects are quantitatively important, suggesting that these externalities should be taken into account in policy making.     

Determinants of Net Migration to Rural Areas,and the Impacts of Migration on Rural Labour Markets and Self-Employment in Rural Sweden

Abstract

Across most of Europe, the countryside seems to show a polarized development in which large districts are depopulating, while certain areas, mainly around big- and mid-sized cities, are increasing in population. The latter development is often described in concepts of “rural gentrification” and “rurbanization”, symbolizing a transformation of rural communities to communities with urban values and lifestyles. Most studies of the effects of these processes have focused on social and cultural consequences, as e.g. the displacements of lower-income households with higher-income residents and of rural culture and values with urban ones. This paper examines the phenomenon from another perspective, namely the effects of the “rurbanization” processes on countryside's labour markets and economic life. This paper aims at analysing the determinants of net migration to rural areas in general and to different types of regions, and the impacts of in-migration on rural labour markets, self-employment and other socio-economic conditions in Sweden for the period of 2003–2005. We find that net migration into rural areas increases with the size of adjacent local and regional centres, whereas net migration decreases with the average commuting distance of workers in the rural areas. When comparing in-migrants to rural areas with rural area stayers, our results indicate that the former has lower incomes, a lower employment ratio and a lower degree of entrepreneurial activities. These differences could—at least partly—be explained by the fact that rural area stayers were on average 6 years older than rural area in-migrants, i.e. the two groups were in different stages of their life cycles.     

Bayesian Analysis of Knowledge Spillovers in European Regions*

Abstract. This paper estimates the effects of knowledge spillovers on patent growth rates across 335 European regions over the 1989–1999 period. We propose a dynamic model based on an innovation production function. A Bayesian approach is used to take into account area‐specific innovation and spatial spillovers. The estimation of the model proceeds via Markov Chain Monte Carlo simulation. The results show significant positive and negative spatial effects on innovative activity. The model allows for a rich spatial specification, which we illustrate by incorporating transport proximity measured by transportation time between regions to augment the typical spatial proximity measure of connectivity between regions. Doing this produces more pronounced spatial spillovers that exhibit a more polarized spatial pattern than a model relying on spatial proximity alone.     

PRODUCTIVITY GROWTH IN THE OLD AND NEW EUROPE: THE ROLE OF AGGLOMERATION EXTERNALITIES

As Europe is currently characterized by huge disparities in the economic performance of “old” and “new” states, we investigate whether this is the result of local agglomeration—specialization and diversity—externalities. Our spatial econometric analysis focuses on total factor productivity dynamics over the period 1996–2007 for 13 industries located in 276 European regions. Consistently with the “nursery cities” theory, we find that diversity exerts a positive effect in the knowledge‐intensive services of the “old” Europe urban areas, while specialization is still effective in the “new” Europe low‐tech manufacturing. Human and technological capital has also a positive impact.     

How much does urban location matter for growth?

This paper analyses the effect of location characteristics on urban growth using regression cubic splines. Our empirical analysis shows that in Spain, differences in accessibility to major urban centres and geographic isolation help explain differences in population growth rates across municipalities between 2001 and 2014. Moreover, even though physical proximity to large cities is usually assumed to be closely related to the attractiveness of a municipality, we found that urban population growth is even more related to the joint effect of distance to major centres and agglomeration. In this respect, there seems to be a threshold from which agglomeration diseconomies come into play such that a greater proximity to major cities and/or being localized within a more densely populated area goes against local growth.     

An alternative policy approach to rural development in regions facing population decline

ABSTRACT

Many rural regions in Europe used to be characterized by weak economic performance and negative population development. While in a long-term perspective this is not any more valid for large parts of Western Europe, a number of rural regions face persistent population decline. By analysing the case of Austria, where approximately one-third of rural areas have experienced such negative population change over the past decades, this paper will examine the impact on economic performance, income levels and well-being patterns. Addressing the crucial and persistent obstacles to positive population trends, new theoretical approaches and perspectives are discussed for overcoming limitations in development. Future approaches for regional development have to go beyond strategies for targeting economic growth, but have to address issues of local participation, social innovation and establishing trust as preconditions to effectively impact well-being dimensions. Such a mobilization effort would be the result of a comprehensive social transition process which would foster an altered narrative for these rural regions compared to the current and predominant focus on compensation and growth policies. Despite strong interlinkages with other regions and actors, the needs of local people would be central and both would be a cornerstone for social innovation.     

Conflict on the urban fringe: Urbanization,environmental stress,and urban unrest in Africa

Most research on the security implications of environmental and demographic change does not explicitly distinguish between urban and rural areas. While statistical conflict analyses are increasingly sophisticated with respect to spatial and substantive disaggregation they largely ignore the possibility that urban and rural areas may be affected differently. In Africa, a continent assumed to be particularly vulnerable to the social and economic externalities of environmental and demographic change, less than one percent of the land mass is defined as ‘urban’. Yet, the population that lives in African cities is expected to increase by more than 150% between 2020 and 2050 according to UN population forecasts, massively outpacing rural population growth estimated at 35%. Given the vast social transformation associated with this process of rapid urbanization, understanding the dynamics and consequences of urban population growth in Sub-Saharan Africa, and its possible relationship with environmental factors is key to reducing vulnerabilities and facilitating sustainable urban growth on the continent. In this article we argue that high urban population growth may strain the provision of public services in urban areas, heighten competition over scarce urban land, and increase the chances of urban social unrest. We expect population pressure to have the most profound effects on social unrest in peri-urban areas, meaning the urban outskirts. We further investigate whether environmental push factors, operationalized as droughts happening in rural areas proximate to the urban centers, could be driving any effect of urban population growth on social disorder, possibly supporting concerns over climate change-induced social unrest. We test our expectations on a sample of similarly sized urban and peri-urban ‘grid cells’ covering the whole of the African continent for the 1997–2010 period, using geo-coded social unrest data. Our analysis shows that urban population growth is associated with increased unrest in the peri-urban areas only. We find no evidence, however, that this relationship is driven by environmental push factors in the form of nearby droughts. The study contributes insights relevant to the broader debates about possible security implications of hyper-urbanization and climate change.     

WHEN AND HOW DOES COMMUTING TO CITIES INFLUENCE RURAL EMPLOYMENT GROWTH?

This paper estimates the influence that rural‐to‐urban commuting has on rural employment growth, and whether the strength and spatial reach of this effect depend on commuters’ levels of education. A main finding is that rural‐to‐urban commuting has a robust positive impact on rural employment growth in services and retail. There is no significant difference in how far these effects reach into rural Sweden for commuters with different levels of education. These results suggest that a viable policy for local employment growth in rural areas with reasonable commuting times to urban centers is to improve the commuting to urban centers.     

Counselling in rural Scotland: care,proximity and trust

People living in small rural communities tend to interact with each other in multiple aspects of their lives and are generally less anonymous to one another than those living in urban places. This density of social connectedness tends to militate against the boundaries normally associated with professionalised forms of care. This article explores how these tensions are negotiated by people who have developed local counselling services in two rural areas in Scotland. Counselling is becoming increasingly widely used as a response to a variety of forms of distress and is argued to constitute a modern urban and feminised form of care. However, notwithstanding its urban origins and associations, people in some rural places in Scotland have successfully arranged for training to be delivered locally to men as well as women. Nevertheless they recognise that for many rural residents, counselling continues to be alien and viewed with suspicion. They describe how they protect the identities of service-users using locational and social network strategies. They also discuss the issues that flow from the challenges of providing well-boundaried relationships. In so doing they point to an inverse relationship between social proximity and trust, thereby supplementing existing accounts of the disadvantages of social proximity in rural places.     

THE USE OF ANALYTICAL METHODS OF MATHEMATICAL STATISTICS FOR IDENTIFYING RURAL PLACES WITH GROWTH PROSPECTS: (with particular reference to Kaliningrad Oblast)

One of the key objectives in the rural development program for the Nonchernozem Zone of the RSFSR is the consolidation of rural settlement in larger places. An example of the dispersed settlement pattern is Kaliningrad Oblast, which has a total of 1,527 rural places ranging from fewer than 5 to more than 2,000 inhabitants, with a total rural population of 195,529 (1970 census). The author shows that growth prospects are dependent on a combination of five factors—geographical setting and level of development; population; fixed assets in agriculture; nonfarm fixed assets; availability of services—and, using correlation analysis, identifies 283 places with prospects of future growth, ranging from 32 in the 51–100 size class to one of more than 2,000 population. The preservation of some small rural places is termed inevitable because many serve as outlying settlements for livestock subdivisions of collective and state farms, and dairy and beef cattle represents a characteristic type of farming in Kaliningrad Oblast.     

Rural population change in Nova Scotia, 1991–2001: bivariate and multivariate analysis of key drivers

Depopulation is a major demographic and economic issue in Nova Scotia, as it is in many of Canada's hinterland areas. Indian Reserves excepted, two-thirds of rural census subdivisions declined in population between 1991 and 2001, and this decline has serious economic and social consequences. By contrast, a small minority of seemingly 'rural' areas is experiencing excessive population growth through exurbanisation. This article combines map and graph analysis with simple regression and multivariate techniques to analyse the key drivers of recent population change. It is shown that such change is strongly and predictably related to unemployment rate, income and population density and moderately related to resource-industry employment, proximity to a major urban centre and commuting. These six variables are interrelated, however, and their separate contributions are explored through principal component analysis and multiple regression. Two variables—resource-industry employment and urban proximity—are identified as key root causes, indicative of separate factors. Findings are related to the Drudy–Gilg model of rural decline, and their policy implications are briefly discussed.     

An Approach to the Mapping of Changes in the Settling Process

A variety of mapping techniques are used to establish regional differences in the settling process in Irkutsk Oblast and to measure the process in general terms. The most dynamic area, with urban and rural population growth, is the Middle Angara valley, where industrialization has been combined with the development of rural nonfarm places based on resource development and construction. Both urban and rural decline is typical of old mining districts, such as the coal district of Cheremkhovo and the gold area of Bodaybo. In most of Irkutsk Oblast, urban growth has been associated with rural decline. An important factor in the rural settling process has been a reduction of the number of places and an increase of the mean size of places, with remarkable stability in the 200–300 population class of rural places. Analysis of the settling process yields a map that distinguishes population growth, decline or stability in combination with a predominance of particular population size classes among rural places. A previous paper by the author on the mapping of the settling process appeared in Soviet Geography, December 1969.     

Destination choices of Chinese rural–urban migrant workers: Jobs,amenities, and local spillovers

Using the 2014 China Migrants Dynamic Survey, we analyze rural–urban migrant workers’ destination choices after the global financial crisis, with an emphasis on jobs, amenities, and local spillovers. By using an equilibrium‐sorting model, this paper disentangles local spillovers from local attributes in the estimation process. We employ both an artificial instrumental variable and the provincial highway passenger flow in 1979 to tackle the endogeneity issue. After controlling for the network effects of migrants from the same origin, we find a separate and strong preference for colocating with a large population of migrants, regardless of origin. The results remain robust when we take into account labor supply‐driven migration, spatial autocorrelation between provinces, different industry definitions, and regional differences within provinces. Our results imply that due to institutional barriers, the rural‐migrant community will still be a very important factor in the foreseeable future. In addition, as the ongoing industrial upgrading and transfer policies in China may lead to a westward movement of rural–urban migrants, the movement will be expedited when the older, less educated, or lower income migrants relocate.     

Changes in the Distribution of Rural Settlement in Northern Kazakhstan from 1959 to 1963

After the first great population movement to northern Kazakhstan in the period 1953–1958 in conjunction with the start of the virgin-lands cultivation program, a period of reordering and restructuring of rural settlement within the region set in during 1959–1963. Three types of settlement areas are distinguished: (1) in areas of predominantly old settlement (preceding the virgin-lands program), the increase of rural population during this five-year period was below the average rate of natural increase for northern Kazakhstan as a whole; there was a net-outmigration from rural to urban areas and to other parts of northern Kazakhstan, (2) in areas of combined old and new settlement, population increase was more significant and there was a noticeable reduction of small populated places and increase in the number of larger places, (3) in areas of predominantly new settlement, where the density of population is lowest, the rate of population increase is highest, and settlement is mainly in widely spaced larger places.     

Faith no more? The divergence of political trust between urban and rural Europe

Events such as Brexit and the Gilet Jaunes protests have highlighted the spatial nature of populism. In particular, there has been increasing political divergence between urban and rural areas, with rural areas apparently having lost faith in national governments. We investigate this divergence using data on over 125,000 EU citizens from the European Social Survey from 2008 to 2018. We show that people in rural areas have lower political trust than urban or peri-urban residents, with this difference clear for six different forms of political institutions, including politicians, political parties, and national parliaments. There has been divergence of political trust between urban and rural Europe since 2008, although this is primarily driven by Southern Europe. While these results can partly be explained by demographic differences between cities and the countryside, divergent economic experiences, differences in values, and perceptions that public services are less effective outside of urban areas, there is a residual ‘rural effect’ beyond this. We argue that the polarisation of urban-rural political trust has important implications for the functioning of European democracies.     

经济一体化背景下的区域溢出分析

从溢出的角度研究区域间的互动关系是一个全新的视角。本文利用协方差统计模型对广东省与其他省区的溢出关系进行分析。结论是:在航空距离影响下,广东对所有省区都具有强度不同的正溢出效果,发挥了区域带动作用。在接受溢出方面,除了四川,甘肃,宁夏和黑龙江以外,其它省区对广东的溢出均表现出强度不同的正效应。对比分析广东对外溢出和获得溢出,可以看出经济水平邻近的长江三角洲地区、地理邻近省区均与广东表现出较强的相互正溢出效应。在区域间信息化缺口的影响下,广东与各区域之间溢出强度下降。     

URBAN CLUSTERS AS GROWTH FOCI*

ABSTRACT Urban clusters are geographic concentrations of urban places, some of which may include major cities. Unlike agglomerations, whose geographic boundaries are clearly delineated, urban clusters have “variable” boundaries, with each urban settlement being part of its “own” cluster of populated places, located within its commuting range. As our study indicates, the effect of clustering on urban growth is not uniform: it appears to be positive in low density clusters, and negative in densely populated ones. In particular, outside densely populated areas, towns surrounded by other localities tend to evince higher rates of population growth than their “lone” counterparts.     

THE PROBLEM OF DEVELOPING RURAL SERVICES IN NOVGOROD OBLAST

Novgorod Oblast, in northwestern Russia, has been distinguished by a high rate of rural outmigration and depletion of agricultural labor resources. One key factor in slowing the flight from the land is an improvement in the quality and range of rural services. The impact of adequate services is shown by available data on the distribution of rural population by distance from service centers. The rate of decline of rural population is generally found to be lower in places near service centers than in more remote places. Since most of the rural places are too small to support service establishments, it is recommended that services be expanded in about 200 central places that show promise of future growth.