Knowledge Production in European Regions: The Impact of Regional Strategies and Regionalization on Innovation

In the last 15 years, the regional scale was used to implement innovation strategies in European Union. Departing from the discussion of the relevance of innovation policy at the regional level, the article benefits from the knowledge production function framework to estimate patterns considering 175 European regions. It is intended to understand whether regional innovation strategies developed and applied between 1994 and 2001 were successful at an aggregated level in contributing for knowledge creation measured in terms of patents and high technology patents. The results underline the relevance of private R&D expenditure and medium and high technology employment to increase patent numbers. The models suggest also that administrative regionalization may be important to regional innovation and that the creation and implementation of a regional strategy have a positive contribution for high tech innovation.     

Regional Efficiency in the European Union

This paper examines existing disparities in technical efficiency levels across the European regions over the period 1986–2002. The results reveal that technical efficiency is not randomly distributed across space in the European setting. On the contrary, the different tests performed highlight the presence of positive spatial autocorrelation and spatial heterogeneity in the distribution under consideration. In fact, we have detected several regional clusters characterized by similar efficiency levels distinguishing them from the rest of the sample. Nevertheless, the estimates carried out show the existence of a process of regional convergence in terms of technical efficiency during the study period. Our findings also reveal that factors such as the regional stock of capital per worker or the patterns of productive specialization are relevant in explaining the changes in technical efficiency experienced by the European regions between 1986 and 2002.     

Regional polarization in the European Union

This paper examines the level and evolution of polarization in regional per capita income in the European Union between 1977 and 1999. In this analysis, non-parametric estimation techniques are combined with the calculation of various polarization measures. The results obtained suggest a decrease in regional polarization in the European context during the period analysed, as a consequence of various factors, at times working in opposite directions. The findings also reveal the existence of discrepancies between the evolution of polarization and regional inequality. Finally, the analysis carried out highlights the importance of the role played by the national component and the spatial dimension in the formation of homogeneous groups of regions linked by similar development levels in the distribution under study.     

Local Strategies within a European Policy Framework

This article discusses the Lisbon Agenda from the perspective of entrepreneurship policy. After a brief overview of the events leading up to the development of the Lisbon Agenda, the authors describe the goals and content of this policy framework as well as of the structural funds. Using examples of initiatives towards implementation at the local level, the authors illustrate the necessity to promote entrepreneurship in order to foster economic growth in communities and regions. We assess how the new European growth policy became translated into an action plan realized through structural funds and community initiatives and demonstrate that a greater focus on entrepreneurship policy could strengthen the Lisbon Strategy and aid in the achievement of its goals.     

Network Structures in Regional Innovation Systems

While interactive learning and inter-organizational relations are the fundamental building blocks in regional innovation system (RIS) theory, the framework is rarely related to investigations of regional knowledge network structures, because in RIS literature relational structures and interaction networks are discussed in a rather fuzzy and generic manner, with the “network term” often being used rather metaphorically. This paper contributes to the literature by discussing theoretical arguments about interactions and knowledge exchange relations in the RIS literature from the perspective of social network analysis. More precise, it links network-theoretical concepts and insights to the well-known classification of RIS types by Cooke [(2004) Introduction: Regional innovation systems – an evolutionary approach, in: P. Cooke, M. Heidenreich & H.-J. Braczyk (Eds) Regional Innovation Systems: The Role of Governances in a Globalized World, 2nd ed., pp. 1–18 (London: UCL Press)]. We thereby exemplarily show how the RIS literature and the literature on regional knowledge networks can benefit from considering insights of the respective other.     

Industrial Heritage Tourism and Regional Restructuring in the European Union

This paper explores the current trend among traditional industrial regions in Europe to launch initiatives in the field of 'industrial heritage tourism'. Increasingly, restoring and exploiting former industrial sites for touristic purposes is regarded as a useful strategy for regional renewal. After having discussed its background and categories, we argue that, theoretically, industrial heritage tourism could be an interesting 'new combination' for industrial areas in the European service economy. In practice, however, its effects for regional restructuring might be limited. Therefore, we suggest to re-use Europe's industrial heritage also for other economic activities than only tourism.     

Characteristics of Collaboration in Product Innovation in the Regional System of Innovation of East Gothia

The focus of this article is on product innovations introduced by firms (establishments) and the collaborations they enter into with other firms and organizations in carrying out this activity. The theoretical framework combines innovation theories with the literature on regional innovation systems and the knowledge-based economy. Empirically we have investigated characteristics of collaboration among manufacturing establishments in the region of East Gothia in Sweden, with specific focus on the number of employees involved in the innovation projects, mechanisms of knowledge transfer between organizations, as well as financing and patenting in relation to product innovations.     

Regional Wage Rigidity: The European Union and United States Compared

In recent years it has been pointed out that regional unemployment disparities are much more entrenched across member states of the European Union (E.U.) than they are in the U.S. A 'conventional wisdom' has emerged to the effect that this difference is due in part to the greater degree of wage rigidity in E.U. regions. In this paper we explore this issue by estimating short run and long run real wage (in)flexibility for the regions in five core E.U. countries (Germany, France, Italy, the United Kingdom, and the Netherlands) and for the U.S. states for the period 1976–1994. We find that real wage (in)flexibility varies across regions both in the E.U. and the U.S., but that, on average, regional wages are no less flexible in E.U. core regions than in U.S. states. The paper also examines some of the possible correlates ofregional variations in wage (in)flexibility.     

Biotechnology Megacentres: Montreal and Toronto Regional Systems of Innovation

Canada hosts two major diversified biotechnology regional systems of innovation in its two largest cities. Similar in many respects, they display some particular characteristics. We review here the main theories on regional innovation systems and innovative clusters and proceed to analyse these two regional systems before concluding on the usefulness of several theories to study biotechnology regional innovation systems.|spagf|ro|epagf|     

The Dynamics of Regional Invention and Innovation: Innovative Capacity and Regional Change in the Twentieth Century

The twentieth century dynamics of United States regional invention trends are explored in this study. Historically, regions that become major loci of invention have always gained much influence, through innovation diffusion, their human capital infrastructures, and their national economic and political projection. The United States has experienced a remarkable inversion of regional roles on invention since the middle of the twentieth century, where the predominant position of heartland regions (the Northeast and the Midwest) is being overturned. This analysis develops a macro-level measure of inventive output, innovative capacity, to evaluate changes in regional inventive performance and the potential for innovation. The analysis of patent age cycles provides insights on the temporal structure of the national and regional innovative capacity, and on the dynamics of crisis periods for U.S. scientific and technological invention. A consideration of regional income trends over the twentieth century and of innovative capacity performance shows the potential importance of endogenously generated inventions for regional development.     

Regional Innovation Policy and Innovative Behaviour: Looking for Additional Effects

This paper aims to evaluate the additionality of innovation policy in terms of innovative behaviours at the regional level. Innovative behaviours are identified both within and across firm and regional boundaries. The role of policy is evaluated for a sample of firms in the Italian region of Emilia–Romagna (ER), exploiting an original, survey-based data set. Propensity score matching is applied to investigate the effects of an innovation subsidy. Funded firms are found to be more likely to upgrade their competencies, compared with similar non-subsidized firms. On the other hand, in most cases, innovation cooperation with other business partners within or outside the region is not significantly affected by policy. Ultimately, the investigated innovation policy in the ER region seems to show what might be termed “cognitive capacity additionality”, rather than “network additionality”.     

Regional Innovation Systems and Economic Performance: Between Regions and Nations

This article aims at assessing the diversity of regional innovation systems and their economic performance in Europe. We propose to adapt the social systems of innovation and production (SSIP) framework at the regional level by identifying the specific arrangements of each part of the innovation and production system. Three key features of European regions are investigated using this framework: the diversity of regional SSIP, the interplay of regional and national determinants of such systems, and the impact of SSIP on regional performance. We identify a typology of regional configurations resulting from the combination of scientific, technological, educational and industrial indicators, using multivariate data analysis. A variance analysis approach is then developed in order to test the existence of specific regional growth regimes. The results highlight a persistently high level of diversity of regional configurations, notably among knowledge intensive regions, but also show that national institutional settings remain of fundamental importance in shaping a number of regional configurations. A final conclusion relates to the weak correlation observed between the structural characteristics of regions and their performance over the 2003–2007 period: regional performance remains primarily shaped by national trends. Overall, the paper questions the regional dimension of these “systems”.     

Innovation System Effects on Technological Adoption in a Regional Value Chain

This paper examines the technology adoption rates of a sample of enterprises that are nominally members of the transportation equipment value chain. We utilize the regional innovation system (RIS) concept to identify and test key regional and corporate influences on technology adoption. Using data collected from a detailed survey instrument, our analysis considers adoption rates during the very period in which production equipment technologies are known to have grown very suddenly, i.e. the fourth quarter of 1994. Our findings indicate that the most important RIS factors are related to worker training and information spillover effects between proximate firms. In the main, our findings are supportive of policies that work indirectly through the market structure of regional economies and a firm's value-chain, as opposed to directly through regional technology agencies.     

Linking Technology Foresight and Regional Innovation Activities: Network Facilitating Innovation Policy in Lahti Region,Finland

During recent years a growing body of literature has been published on regional innovation systems and regional foresight activities. However, not so much attention has been paid on modelling the connection between these two areas of research. This article proposes a model on how to use results of regional technology foresight in generating practical innovation processes in a region with mainly synthetic knowledge infrastructures. The model draws upon practical experiences from Lahti region, Finland, where the concept of network facilitating innovation policy has been adopted as part of the regional development strategy.     

Measuring the Economic,Social and Environmental Performance of European Island Regions: Emerging Issues for European and Regional Policy

Islands in the European Union (EU) are very diverse, with many small or very small islands and are recognized as territories facing particular development challenges. In this study, we seek to compare the state and the attractiveness of island administration units in their national and EU context and highlight their divergence in different dimensions, building on existing analysis of the European Commission and of ESPON, using more indicators than the GDP per capita. The assessment is performed with the use of five different indexes: one for the state of development, one for changes during 2000–2006 and three for the attractiveness of islands (direct effects of insularity to attractiveness, indirect effects and natural and cultural potential of islands). Findings for economy demonstrate that islands with better economic performance either specialize in a low added value activity (tourism), or have their GDP “boosted” by exogenous influences (duty free area, oil extraction or the public sector). For attractiveness, most of the islands perform very low and the situation of small islands and archipelagos is worse. Since insularity can be considered as a permanent, natural feature affecting negatively, directly and indirectly, most of the factors that make islands attractive, the need for a territorial policy emerges.     

Regional Innovation Support Systems: Recent Trends in Germany and East Asia

Since the beginning of the 1990s, one can observe a clear shift in the aims of regional policy in industrialized countries from reducing regional inequalities to developing endogenous small and medium-sized enterprises (SMEs) and innovation in regions through regional innovation support systems. Innovation support systems are defined as a group of actively cooperating organizations that support the innovativeness of SMEs. An innovation support system consists of all agencies found in three support stages, namely the provision of general information, technological advice and joint R&D projects, between firms (of which technology-following SMEs are the main group), higher education institutes (HEIs) and public research establishments (PREs). Agencies found in these stages try to help to solve innovation problems mainly of technology-following SMEs by either giving them advice themselves or by referring them to other agencies in a further stage of support. The agencies can be mainly supra-nationally, nationally or regionally initiated. This paper aims at comparing these regional innovation support systems in Germany and East Asia, that is Japan and South Korea, both concerning the instruments used, their impact on regional economic development, their level of organizational embeddedness in regions and the ability of regions to coordinate innovation support policies. The main conclusions of the paper are that there are similarities between the regional innovation support systems found in the countries when it comes to policy instruments, but that the countries differ concerning their level of regional embeddedness and the abilities of regions to coordinate innovation support policies. The paper also tentatively concludes that in countries where regions have the ability to coordinate policies into integrative innovation support systems, the impact on regional economic development tend to be larger than in countries where these abilities are lacking, that is where dirigiste and grassroots support systems prevail. One important explanation for the different coordinating abilities lies in the different political-administrative systems found in the studied countries (centralized in South Korea versus federal in Germany). Other factors explaining differences are: a time lag of development policies between countries, differences between the history of supporting SMEs in regions, supra-national support frameworks, the commitment of the political leaders in regions, collective trust and the size of countries.     

How Regional Innovation Systems Play a Relative Competitive Role Within Knowledge Networks

This study aims to explain how specific regional innovation systems (RISs) play relative important role in the knowledge network within European regions. EC encourages the interactions between regions and develop toward a cohesion balance. The whole Europe can be taken as a knowledge network that consists of different RISs possessing diversified resources. The existences of hierarchical relationships between different regions seem to lead us to explain whether the path toward higher-order position can be done by RISs to shape the regional competence in specific technological fields. We establish the datasets on the basis of patent data (from EPO) and REGIO database. Regional-level dataset, including 129 regions, helps to explore how different RIS develop their technological paths, and whether locational economic factors, technological conditions, and local innovativeness help RISs toward high-order position in the network. In addition, we also explore the role of the interaction of local factors for RISs in developing network position in Europe.     

Intermediaries in Regional Innovation Systems: High-Technology Enterprise Survey from Northern Finland

Intermediaries play an important role in national as well as in regional innovation systems, especially in innovation policy. In linking organizations within an innovation system, intermediaries are focusing on technology transfer, commercialization of ideas and funding. This research focuses on the role of intermediaries in high-technology product development in northern Finland. Based on a survey of 168 high-technology enterprises, funding services are regarded as the most important activity of intermediaries. Our results show that finance matters: a key actor within the Finnish innovation system in terms of direct funding and indirect collaborative resourcing, the Finnish Funding Agency for Technology and Innovation (TEKES), is considered the most important public sector organization in private sector product development. The survey also reveals that growth-driven companies with emphases on product innovation and high levels of investment in research and development for increasing their annual turnover benefit the most from intermediaries.