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.     

Knowledge Spillovers and Total Factor Productivity: Evidence Using a Spatial Panel Data Model

This article investigates the impact of knowledge capital stocks on total factor productivity (TFP) through the lens of the knowledge capital model proposed by Griliches (1979) , augmented with a spatially discounted cross-region knowledge spillover pool variable. The objective is to shift attention from firms and industries to regions and to estimate the impact of cross-region knowledge spillovers on TFP in Europe. The dependent variable is the region-level TFP, measured in terms of the superlative TFP index suggested by Caves, Christensen, and Diewert (1982) . This index describes how efficiently each region transforms physical capital and labor into output. The explanatory variables are internal and out-of-region stocks of knowledge, the latter capturing the contribution of cross-region knowledge spillovers. We construct patent stocks to proxy annual regional knowledge capital stocks for N =203 regions during 1997–2002. In estimating the effects, we implement a spatial panel data model that controls for spatial autocorrelation as well as individual heterogeneity across regions. The findings provide a fairly remarkable confirmation of the role of knowledge capital contributing to productivity differences among regions and add an important spatial dimension to discussions in the literature by showing that productivity effects of knowledge spillovers increase with geographic proximity.     

Cross-Border M&As and the Changing Economic Geography of Europe

This study investigates the patterns of corporate mergers and acquisitions (M&As) involving firms located in the EU25 as well as in the four EFTA countries between 1998 and 2003. Against the background of a reflection on the concept of the firm in economic geography, it uncovers the cross-border balance of M&As across European states and identifies the factors that may explain the levels and patterns of corporate takeovers across Europe. The results indicate that the traditional motives of access to new and core markets, the effects of geographical proximity, and the internalisation of localised capabilities (proxied by a skilled and innovative labour pool) represent the key drivers of European M&As, while institutional factors, such as European integration or language barriers, appear to be less influential.     

Is distance really dying? Transportation and knowledge spillovers

Enhanced transportation infrastructure improves the frequency of travel and facilitates face-to-face communication. Will the resulting reduction in travel cost mitigate the geographical concentration of knowledge spillovers? Our empirical strategy exploits China's mass expansion of its intercity high-speed railway network as a natural experiment. Using patent citations as the proxy for knowledge spillovers, we find inventors increasingly rely on more distant knowledge after rail connection and newly connect cities' innovation performance improves substantially.     

我国装备制造业的创新、知识溢出和产学研合作——基于一个扩展的知识生产函数方法

知识溢出的本地化现象揭示了地理边界的限制机理,然而越来越多的研究表明知识溢出也可发生在远距离的空间范围内。本文以我国装备制造业为例,采用扩展的知识生产函数方法探讨大学和科研机构的知识溢出对区域创新的影响。结果表明,大学和科研机构能够产生强烈的本地和跨区域的知识溢出效应,地理空间和创新网络在跨区域知识溢出中扮演重要角色。其中,产学研合作产生的知识溢出不仅局限于区域尺度,也发生在更高的国家尺度;在地理空间的制约影响下,高素质劳动力的流动对区域创新的影响十分显著且稳定,而大学和科研机构的衍生溢出机制则不那么明显,其原因可能与空间尺度选择有关。     

Examining the Role of Geographical Proximity in a Cluster's Transformation Process: The Case of Taiwan's Machine Tool Industry

This paper examines the relationship between geographical proximity and a cluster's sustained dynamism with a specific focus on the role of geographical proximity in the transformation of cluster firms' production and learning organizations. Using Taiwan's machine tool cluster as an empirical case, this article studies the nature of various intra- and extra-cluster technological networks established by local firms to tackle the cluster's developmental inertia. In contrast to most recent studies that seem to consider geographical proximity less relevant to the sustained prosperity of incumbent clusters, our case study finds that geographical proximity continues to be a critical factor underlying agglomerated firms' capacity to maintain and explore diverse capabilities within and outside the clusters. On the one hand, co-location allows these firms and their coupled actors to experiment with a range of technological networks and organizational forms in the face of the changing competitive conditions. On the other hand, while the spatial boundaries of important technological networks in the cluster are not necessarily confined to the locality, we find that geographical proximity among networked members is the key to the emergence of and better governing over those crucial extra-cluster networks. In addition to responding to the call for empirical work exploring the relationships between geographical proximity and non-geographical proximity in knowledge creation and exchange, this article contributes to the cluster literature by providing evidence on the evolution of clusters and whether the advantages associated with geographical clustering persist over time.     

Communication and Distance in Collaboration between High-technology Enterprises in Northern Finland

New technologies affect economic activities, even to the extent that some claim they have lessened the importance of geographical distance. However, collaboration in product innovation creation involves various elements; therefore the development of technologies does not make geographical proximity insignificant. In this paper a study is made of collaboration aiming to create a product innovation between high-technology enterprises in northern Finland, especially the intertwining between communication and geographical distance. The study is based on interviews with managers of high-technology enterprises. The results indicate that while email and personal meetings are seen as important, geographical proximity also has an effect on collaboration.     

Interaction among High-tech Talent and its Impact on Innovation Performance: A Comparison of Taiwanese Science Parks at Different Stages of Development

Numerous studies have studied how knowledge spillovers and various other factors influence industrial clusters in terms of geographical proximity. Related studies have generally confirmed significant positive correlations between firm innovative activities and factors such as spatial proximity and degree of industrial clustering. This study elucidates on an individual level, based on the relationship between proximity dimension and innovative activity, the interactive relationships between the mobility and interaction of high-tech talent and innovation performance. Survey results indicate that the spatial proximity of firms clustering within the Hsinchu and Tainan Science-based Industrial Park increases the interaction among high-tech personnel and the expansion of their professional networks, thus promoting innovation. Gradually organizational and social proximity evolve from physical proximity within high-tech districts via the evolution of industrial networks and interactions among high-tech talent. Additionally survey results demonstrate the value of mobility and informal relationships involving high-tech talent, as well as the effect of these relationships on innovation performance during the various stages of science park development. However, how to avoid lock-in in the future development of high-tech districts remains a critical issue. The results of this investigation provide a useful reference for planning and managing industrial districts.     

Spatial Proximity and Intercompany Communication: Myths and Realities

Abstract

Spatial proximity is credited with numerous virtues in the economic literature. In particular, for a company to be located near other companies is seen as conducive to the development of business relations. Spatial proximity is also considered to contribute to the quality and efficiency of these relations by facilitating face-to-face meetings that foster the exchange of complex knowledge and, in particular, the emergence of innovation. This article explores the notion of spatial proximity in intercompany relations, its capacity to facilitate exchange, as well as the link with the methods of communication employed (information and communication technologies and face-to-face). It is based on a distinction between real proximity (the spatial distance between firms), perceived proximity (the spatial distance as evaluated by the firm itself) and active proximity (spatial proximity that facilitates the exchanges). The data come from a survey conducted in 2008 with more than 2000 firms located in the Brittany region (France). The findings emphasize the relative nature of the notion of spatial proximity and the distinction in some cases between real and active proximities, and show that the positive perception of the role of spatial proximity is sustained by the increased face-to-face contact it entails.     

中国电子机械制造业出口产品贸易网络研究——基于产品内分工与贸易视角

在区分中间/最终产品、一般/加工贸易后，描述了中国电子机械制造业出口产品贸易网络，并探讨了出口经验和产品关联如何影响企业进入网络从事出口和拓展优势贸易伙伴。结果表明：①出口地、目的国、出口地-目的国维度出口经验和产品关联可以显著地促进4种电子机械制造业产品企业进入特定贸易网络进行出口。②在位出口企业扩展优势伙伴方面，出口地-目的国维度出口经验对4种企业均有促进作用；目的国出口经验、出口地产品关联的促进作用集中在中间产品企业；出口地出口经验则集中在一般贸易企业。     

GLOBALIZING KNOWLEDGE: HOW TECHNOLOGICAL OPENNESS AFFECTS OUTPUT,SPATIAL INEQUALITY,AND WELFARE LEVELS

Using an analytically solvable model, we study how the spatial distribution of economic activities and the ensuing welfare levels are affected by pecuniary externalities, depending on transportation costs, and localized technological externalities, due to the cost saving effect of intra‐ and interregional knowledge spillovers. Under the assumption of capital mobility and labor immobility, we show that increasing interregional knowledge spillovers, i.e., promoting technological openness, favors a smoother transition between different levels of firms concentration, makes trade globalization less likely to generate catastrophic and irreversible agglomeration, and ultimately leads to a less uneven distribution of welfare.     

中国省区间的外资R&D知识溢出及其空间差异研究——基于随机前沿生产模型(SFA)的实证

基于随机前沿生产函数构建的区域知识溢出模型,实证分析了中国省区层面的外资R&D空间溢出效应及其差异。结果显示,我国外资R&D活动不仅对本省存在溢出影响,对邻省亦有重要贡献;东部省区同时受益于其东、中部邻省的外资R&D溢出效应,但中西部省区均只从同一区域且邻近省份的外资R&D活动获益。研究还发现,我国三大区域内部均已结成紧密的省际空间联系,外资R&D双向溢出显著;但东部与中部省区的空间关联度不强,外资R&D呈单向溢出格局;而中部与西部之间目前仍存在明显的空间分割特征,造成彼此之间互无溢出。     

Reimagining GIScience for relational spaces

A mismatch between largely absolute Newtonian models of space in GIScience and the relational spaces of critical human geography has contributed to mutual disinterest between the fields. Critical GIS has offered an intellectual critique of GIScience without substantially altering how particular key geographical concepts are expressed in data structures. Although keystone ideas in GIScience such as Tobler's “First Law” and the modifiable areal unit problem speak to enduring concerns of human geography, they have drawn little interest from that field. Here, we suggest one way to reformulate the computational approach to the region for relational space, so that regions emerge not through proximity in an absolute space or similarities in intensive properties, but according to their similarities in relations. We show how this might operate theoretically and empirically, working through three illustrative examples. Our approach gestures toward reformulating key terms in GIScience like distance, proximity, networks, and spatial building blocks such as the polygon. Re‐engaging the challenges of representing geographical concepts computationally can yield new kinds of GIS and GIScience resonant with theoretical ideas in human geography, and also lead to critical human geographic practices less antagonistic to computation.     

Integration Processes in European Research and Development: A Comparative Spatial Interaction Approach Using Project Based Research and Development Networks,Co‐Patent Networks and Co‐Publication Networks

This study focuses on integration processes in European Research and Development (R&D) by analyzing the spatiotemporal dimension of three different R&D collaboration networks across Europe. The studied networks cover different types of knowledge creation, namely project‐based R&D networks within the European Union (EU) Framework Programmes (FPs), co‐patent networks, and co‐publication networks. Integration in European R&D—one of the main pillars of the EU Science Technology and Innovation policy—refers to the harmonization of fragmented national research systems across Europe and to the free movement of knowledge and researchers. The objective is to describe and compare spatiotemporal patterns at a regional level and to estimate the evolution of separation effects over the time period 1999–2006 that influence the probability of cross‐region collaborations in the distinct networks under consideration. The study adopts a spatial interaction modeling perspective, econometrically specifying a panel generalized linear model relationship, taking into account spatial autocorrelation among flows using eigenfunction spatial filtering methods. The results show that geographical factors are a lower hurdle for R&D collaborations in the FP networks than in co‐patent networks and co‐publication networks. Furthermore, it is shown that the geographical integration is higher in the FP network.     

MODELING SPATIAL AUTOCORRELATION IN SPATIAL INTERACTION DATA: AN APPLICATION TO PATENT CITATION DATA IN THE EUROPEAN UNION*

ABSTRACT Spatial interaction models of the gravity type are widely used to model origin–destination flows. They draw attention to three types of variables to explain variation in spatial interactions across geographic space: variables that characterize an origin region of a flow, variables that characterize a destination region of a flow, and finally variables that measure the separation between origin and destination regions. This paper outlines and compares two approaches, the spatial econometric and the eigenfunction‐based spatial filtering approach, to deal with the issue of spatial autocorrelation among flow residuals. An example using patent citation data that capture knowledge flows across 112 European regions serves to illustrate the application and the comparison of the two approaches.     

DETERMINANTS OF KNOWLEDGE PRODUCTION AND THEIR EFFECTS ON REGIONAL ECONOMIC GROWTH

ABSTRACT We provide a Bayesian spatial Markov Chain Monte Carlo model composition (MC³) analysis of growth rates in European regional patenting activity. Based on theoretical models on innovation and growth, we identify a large set of candidate explanatory variables that characterize regional stocks of knowledge, including: human resources devoted to innovative activity, scientific and technical capabilities, public and private investments, government policies, as well as regional industry structure, and indicators of regional technology gaps that reflect distance from the technological frontier. Our analysis shows that accommodating spatial dependence and heterogeneity leads to different conclusions regarding factors important for technological transfer and knowledge spillovers.     

技术学习与创新:经济地理学的视角

技术学习与创新是20世纪90年代以来经济地理学研究的核心领域之一,它与"异端经济学"之间的互动,既促进了经济地理学的繁荣和学科地位的提升,也为"异端经济学"对技术学习与创新的研究提供了独特的地理视角。本文试图全面梳理经济地理学技术学习与创新研究兴起与深化的过程,从地理接近与面对面交流,关系接近与实践社区,制度接近、嵌入、路径依赖与创新场三个既相互争论又高度互补的方面,来系统阐述技术学习与创新的经济地理机制,并针对当前研究的局限性提出了建构高层次综合的技术学习创新与区域发展理论的设想。     

Multi-level Science Policy and Regional Innovation: The Case of the Munich Cluster for Pharmaceutical Biotechnology

Knowledge-based industries tend to develop within regional or local clusters that allow for knowledge spillovers, the generation of a critical mass of complementary competencies and skills as for spatial proximity to academic organizations out of which many highly innovative firms have been founded. The prototype of that development certainly is the biotechnology industry which has emerged since the 1970s first in the US where especially small and medium-sized research companies have been established around leading science bases. Following the example of the US biotechnology industry, public policies in many industrialized countries aimed at stimulating cluster formation in biotechnology. This holds true especially for member states of the European Union (EU) where public policy initiatives have been initiated at different territorial levels. This article refers to the Munich pharmaceutical biotechnology cluster and applies institutional and organizational indicators that have been developed in various systemic analyses of technological development and innovation. It will be shown that reforms of the institutional environment in which the innovative organizations are embedded were crucial for the commercialization of biotechnological research in Germany. These reforms have occurred mostly at the regional and national level, whereas the EU played a role especially in establishing the regulatory framework for the biotechnology industry. Organizational indicators will be applied in order to assess the modes of knowledge production within the cluster.     

The impact of language borders on the spatial decay of agglomeration and competition spillovers

There is now strong evidence that “soft” institutions are interrelated with the working of the economy. For example, in a geographical setting there is evidence that language borders affect interpersonal relationships, but there is no equivalent evidence regarding the effects of language borders on agglomeration or competition spillovers. This paper examines whether language affects the geographical extension of agglomeration and competition spillovers by observing the geography of employment patterns in a linguistically discontinuous setting. Our findings, for the first time, provide empirical evidence that language borders shape the distance decay of competition spillovers, independent of governance, and institutional issues.     

Outsmarting geography: implementing territorial innovation strategies in sparsely populated regions

The smart specialization literature has hardly addressed the role of geography in promoting novel approaches to local and regional innovation processes beyond classic clustering approaches. Based on empirical observations from five sparsely populated regions, the present article proposes original insights that contribute to the theoretical debate on the place-based nature and spatial dimension of entrepreneurial discovery, the key functional mechanism behind smart specialization. First, it advocates the added-value of integrating strategic spatial planning approaches at different stages of smart specialization implementation, from design to operationalization. Second, it suggests that more effective ways of creating domains through shared knowledge bases of existing sectors should aim at promoting collaboration between second-tier economic agents. Finally, the specificity of the territorial preconditions found in sparsely populated regions brings to the fore new forms of proximity relations based on institutional, cognitive and organizational proximity rather than on geographical clustering.