The Successful Transition to a Knowledge‐Based Development Path of a Less‐Developed Region

This paper presents the case of a less‐developed EU region—the Pomeranian region of Poland—that is, an example of the successful transformation from a command to market economy and the creation of a new knowledge‐based development path thanks to the upgrading of its innovation model. This successful transformation was based, in part, on the region's specific innovation policy and the activities of pro‐innovative institutions; however, other factors were also important such as the diversified structure of the region's economy. New knowledge‐based industries have developed in the region, while the potential of traditional industries that have gone through a restructuring, has been maintained. The factors that existed prior to the innovation model's transformation included such aspects as the high quality of human and social capital, a strong academic center, a high quality of life, and an open economy and society. Supply factors in the form of qualified personnel were crucial for the growth of employment in new industries and R&D that determined the improvement of the regional GDP per capita. Moreover, the transition to a knowledge‐based economy stimulated an increase in the concentration of population in the metropolitan area of Tri‐City.     

Regional Business Cycles and the Emergence of Sheltered Economies in the Southern Periphery of Europe

ABSTRACT Recent research has highlighted that in the last few years, the evolution of regional disparities in many European states has become pro‐cyclical. This represents a change with respect to the predominantly anti‐cyclical pattern of the 1960s and 1970s. This paper addresses the question of whether and when this change has taken place in the southern periphery of Europe, before analysing the factors that may have played a role in such a change. The analysis relies on a regional database that includes the evolution of the GDP per capita of NUTS II regions in five European countries (France, Greece, Italy, Portugal, and Spain) between 1980 and 2000. The results of the analysis support the hypothesis of a change towards a pro‐cyclical evolution of regional disparities in the cases of Italy, Portugal, and Spain, but not in those of Greece and France. A relationship between these pro‐cyclical patterns and the emergence of less dynamic sheltered economies is also detected in peripheral regions. This lack of dynamism is related to the fact that numerous peripheral areas in southern Europe have become increasingly dependent on factors such as transfers or public investment and employment, and therefore are less exposed to changes in market conditions.     

Innovation and Regional Growth in Mexico: 2000–2010

This paper looks at the factors driving regional growth in Mexico, paying special attention to the potentially growth‐enhancing role of innovation and innovation policy. The analysis combines innovation variables with indicators linked to the formation of adequate social conditions for innovation (the social filter), and spillovers for 31 Mexican states and the Mexico City capital district (the Distrito Federal) during the period 2000–2010. The results indicate that regional economic growth across Mexican states stems from direct investment in research and development (R&D) in areas with favorable social filters and which can benefit not only from knowledge spillovers, but also from being surrounded by rich neighbors with good social conditions. The results stress that, although Mexican innovation policy has been relatively well targeted in order to generate greater economic growth, its relatively modest size may have undermined the attainment of its main objectives.     

Innovation strategies for smart specialisation (RIS3): Past,present and future research

The recent change in the regional development strategy of the European Union (EU) results in an important need to study the terms of change and their respective implications. This study seeks, through a bibliometric analysis, to ascertain the developments taking place in studies on research and innovation strategies for smart specialisation (RIS3) to identify shortcomings and opportunities for future research. This bibliometric review drew upon the Scopus database with the sample selected containing all the articles containing the keywords “Research and Innovation Strategies for Smart Specialisation” or “RIS3.” This correspondingly reports how some authors maintain that the path the EU should take involves imitative innovation. Meanwhile, others propose that each region should specialise in those industries that are already established there and thus avoid targeting any areas they do not already know/specialise in. Our findings detail six clusters in RIS3 research, which help in contextualising the literature review: (a) business discovery; (b) smart specialisation; (c) innovation; (d) specialisation; (e) regional policies; and (f) regional development. This study furthermore sets out perspectives for future lines of research and correspondingly seeks to convey a vast theoretical basis that may serve as the point of departure for future studies.     

From R&D to Innovation and Economic Growth in the EU

ABSTRACT Over the last two decades many European governments have pursued ambitious research and development (R&D) policies with the aim of fostering innovation and economic growth in peripheral regions of Europe. The question is whether these policies are paying off. Arguments such as the need to reach a minimum threshold of research, the existence of important distance decay effects in the diffusion of technological spillovers, the presence of increasing returns to scale in R&D investments, or the unavailability of the necessary socio‐economic conditions in these regions to generate innovation seem to cast doubts about the possible returns of these sort of policies. This paper addresses this question. A two‐step analysis is used in order to first identify the impact of R&D investment of the private, public, and higher education sectors on innovation (measured as the number of patent applications per million population). The influence of innovation and innovation growth on economic growth is then addressed. The results indicate that R&D investment, as a whole, and higher education R&D investment in peripheral regions of the EU, in particular, are positively associated with innovation. The existence and strength of this association are, however, contingent upon region‐specific socio‐economic characteristics, which affect the capacity of each region to transform R&D investment into innovation and, eventually, innovation into economic growth.     

The comparative study of China's mega‐city regions: A perspective of competitiveness

Mega‐city regions (MCRs) have emerged as the main spatial form of China's new urbanization strategy and become the basic spatial units participating in global and regional competition. However, MCRs are not equally capable of boosting regional economic development due to their different levels of development. Therefore, this paper adopts the concept of competitiveness as both a theoretical framework and an empirical model to evaluate the development status of China's MCRs. Based on a review of the existing literature, this paper proposes a multi‐tier evaluation system to calculate the competitiveness of 13 MCRs. The chosen indicators come from the six perspectives of economic development, human resources, infrastructural accessibility, integration into the global economy, capacity for scientific and technological innovation, and sustainable development. The results show that there are great disparities and regional inequalities in competitiveness across different MCRs. The Yangtze River Delta, Pearl River Delta, and Beijing–Tianjin–Tangshan MCRs are the first‐tier MCRs with the highest levels of development and have significant global influence as well. Chengdu–Chongqing, Shandong Peninsula, South‐central Liaoning, and Wuhan belong to the second‐tier of MCRs that show partial advantages and have significant regional influence. The remaining regions belong to the third‐ or fourth‐tier of MCRs that have relatively weak competitiveness. The competitiveness of MCRs largely depends on the concentration of core elements in core cities.     

Exploring the recent upsurge in productivity disparities among European regions

This paper analyses thse evolution of productivity disparities across 156 European regions in the period 2000–2015. Using regional data, a battery of inequality indexes enables us to assess the extent of regional disparities. After confirming that labour productivity is the main component of income disparities, a dynamic shift-share analysis is carried out at a 10-industry level of disaggregation. The study evaluates the relative role of the three components underlying the disparities in regional productivity: changes in the industry mix, and within- and between-industry productivity gaps. The main results can be summarised as follows. First, regional disparities are on the rise again in the EU. Second, most regions are now closer to the average, while a small group of the richest regions are moving further away. Third, the main drivers of productivity disparities are within-industry differences in labour productivity with regard to the richest regions and, less importantly, the specialisation of the richest regions in more progressive industries. Finally, the net effect of structural change is still making a positive contribution to convergence with the leading regions.     

Regional Convergence in Mexico, 1970–2005: A Panel Data Approach

This paper empirically analyzes regional disparity in terms of convergence of per capita income across Mexican states for the period 1970–2005. In particular, this study extends the conventional cross‐sectional conditional β‐convergence analysis of the existing literatures on Mexico to panel data analysis, and focuses on whether the convergence performance varies between the pre‐ and post‐economic liberalization periods. When unobservable state‐specific effects are controlled by the panel data technique, the estimated coefficients show significant conditional β‐convergence, even after economic liberalization, but with a lower speed than before economic liberalization.     

Regional Growth Dynamics in the Service Sector: The Determinants of Employment Change in UK Regions, 1971–2005

There is a need to better understand the dynamics relating to the evolving economic structure of regions, in particular factors concerning deindustrialisation and the growth of services. In order to unpick the dynamics relating to contemporary regional evolution, this paper examines regional employment in the UK's services sectors from 1971 to 2005. The analysis utilises the statistical technique of multi‐factor partitioning to examine the evolutionary dynamics of employment change in the UK service sector. Overall, differing growth trajectories in services employment across regions appear to be the result of the different underlying industrial structures observed within the regions themselves. The findings indicate that the industrial structure of a region has a significant influence on employment change in services, with related variety being of greater consequence than specialisation. This suggests that diversity, or urbanisation, effects have a greater influence than specialisation effects on “lighter” industries than “heavier” industries. Spatio‐temporal variations within the development of services are evident in the analysis, and there is evidence of convergence across the regions for all sub‐sectors examined. It concludes that in an increasingly services‐dominated economy, diversity and related variety have some weight in explaining regional development paths.     

Regional Innovation Clusters: A Critical Review

In this paper, we present a critical assessment of recent economic development policy directions centered on the concept of regional innovation clusters. We begin by investigating the rationale underlying the Obama administration's promotion of regional innovation clusters (RICs) and their introduction to the policy arena in its Strategy for American Innovation. The connections among RICs and existing research and policies in industry and occupational clusters, regional innovation systems and regional economic development are identified and analyzed to highlight those most critical challenges to conceptualizing and theorizing RICs. While we applaud the long overdue focus of economic development policies on sub‐national regions, we identify several major conceptual shortcomings and programmatic difficulties associated with RICs as a centerpiece for economic development strategies.     

Innovation and Regional Growth in the Enlarged Europe: The Role of Local Innovative Capabilities,Peripherality, and Education

ABSTRACT In this paper, a formal model for the relationship between innovation and growth in European Union regions is developed drawing upon the theoretical contribution of the systems of innovation approach. The model combines the analytical approach of the regional growth models with the insights of the systemic approach. The cross‐sectional analysis, covering all the Enlarged Europe (EU‐25) regions (for which data are available), shows that regional innovative activities (for which a specific measure is developed) play a significant role in determining differential regional growth patterns. Furthermore, the model sheds light on how geographical accessibility and human capital accumulation, by shaping the regional system of innovation, interact (in a statistically significant way) with local innovative activities, thus allowing them to be more (or less) effectively translated into economic growth. The paper shows that an increase in innovative effort is not necessarily likely to produce the same effect in all EU‐25 regions. Indeed, the empirical analysis suggests that in order to allow innovative efforts in peripheral regions to be as productive as in core areas, they need to be complemented by huge investments in human capital.     

High‐Growth Firms in the Southern U.S.: Where is the Growth?

Policymakers across the Southern U.S. have directed considerable attention to regional economic development plans, with mixed results. Questions remain over what types of industries, firms, and/or policies can drive long‐range growth. Over the past two decades, researchers have started to focus on high‐growth firms (HGFs) due to their potential innovation spillovers and job creation prospects, both of which drive further economic development. Employing databases from the Inc. 500, this study explores the dynamics of HGFs within Southern and comparative contexts. The first goal of this paper is to explore Southern HGF activity in comparison with the U.S. at‐large. The second is to examine the geographical characteristics of HGFs within the South, which will include an exploration of locations, industrial mix, and the factors that could encourage HGF development and agglomeration. This paper will also analyze the longer‐term ownership and acquisition patterns of HGFs across the South. Are such firms remaining embedded in the South or moving elsewhere through mergers or acquisitions? The paper concludes with a discussion of the impacts of HGFs on regional economic development and moreover, whether existing policies are conducive to these firms.     

European Regional Convergence Revisited: A Weighted Least Squares Approach

A plethora of past studies have concluded that unconditional β‐convergence is present in a broad sample of regions, implying that poor regions grow faster than rich ones. All these econometric studies tend to overlook the relative importance or size of each region in the national setting, treating all regional observations as equal. However, this assumption might lead to unrealistic or misleading results. Convergence analysis could be more meaningful if it included a weighting mechanism taking into account the size of regions. The aim of this paper is to investigate whether the inclusion of a weighting mechanism in β‐convergence analysis, giving more weight to larger regions and less to smaller ones, can result in sharply different implications for the regional convergence‐divergence process. For this reason, both unweighted ordinary least squares (OLS) and weighted least squares estimators are used in the analysis of regional (intra‐national) convergence within 10 European Union (EU) countries over the period 1990–2000. The comparison between the two methods reveals that when regions are appropriately weighted for their size, intra‐national divergence, rather than convergence found with the OLS approach, seems to be the dominant experience in the EU.     

Regional Equality and National Development in China: Is There a Trade‐Off?

Despite high economic growth over the past 30 years, China's substantial and persistent regional disparities have been the subject of continuing concern to policy makers, as well as the target of a wide variety of policies. An important issue in the policy debate about whether and how best to attack these disparities is whether measures designed to improve regional equality come at a cost to national development, i.e., whether there is a trade‐off between the level of national output and the equality of its distribution across the regions. There is little analysis of this issue in the literature. We help fill this gap by setting up a two‐region model designed to capture some of the salient features of the Chinese economy. We subject this model to a number of policy shocks and assess the effects on regional disparities in per capita output, on the one hand, and on aggregate output on the other to investigate the trade‐off. We also consider income and welfare as alternatives to output. We find, first, that disparities in per capita output, income, and welfare may move in different directions so that it is important to specify which disparity is being targeted. Second, since both disparities and aggregate outcomes are endogenous, how they move together depends on the nature of the shock driving the model. Thus, some policies designed to reduce disparities face a trade‐off and others do not. Only a reduction in internal migration restrictions unambiguously reduces all three disparity measures and increases aggregate output, income, and welfare. All other policies considered face a trade‐off in at least one dimension. Third, whether there is a trade‐off depends also on the time horizon—some policies face a trade‐off in the short run and not in the long run and vice versa.     

Great Recession and club convergence in Europe: A cross-country,cross-region panel analysis (2000–2015)

The paper aims at investigating the impact of the Great Recession on per capita GDP convergence process across European regions and countries. Using the time-varying factor model developed by Phillips and Sul for the period 2000–2015 and two different merging procedures to identify clubs, we provide evidence of the diverging impact of the Great Recession “between” the higher and the lower convergence clubs at both regional and country levels as well as of the strengthening of the convergence process “within” most clubs. In addition, we add further evidence to the common belief of a “multi-speed” Europe by contrasting Eastern European countries' and regions' behavior vis-à-vis original European members' one, and by identifying the factors that affect club membership and resilience to the recent economic downturn. We find that the membership in the higher clubs and resilience to the Great Recession are positively affected by the presence of several local-specific factors and macroeconomic characteristics.     

Spatial Effects in Website Adoption by Firms in European Regions

The purpose of this paper is to provide empirical evidence on the neighboring effects of Internet adoption as measured by the percentage of firms with their own website in the European regions. This is the first study that explicitly analyzes the role played by spatial effects to explain website adoption for the European case. A set of instruments and techniques commonly used in the spatial econometrics framework is employed to test the hypothesis that proximity matters when explaining Internet adoption by firms. Results show that firms in physically adjacent regions register a similar degree of Internet adoption, confirming the presence in this context of positive spatial dependence. Nevertheless, the spatial effects detected are mainly constrained by national borders. Gross domestic product (GDP) per capita, population density, sectoral composition, and education are positively related to geographic distribution of Internet adoption in the enlarged European Union. In addition, regional disparities in Internet adoption were found to be less important than territorial inequalities in GDP per capita.     

The space-time evolution and driving forces of county economic growth in China from 1998 to 2015

Coordinated growth in regional economies is fundamental for sustainable economic development. In this study, the space-time dynamics of GDP per capita for 2,303 counties in China from 1998 to 2015 were analyzed based on an exploratory space-time data analysis (ESTDA) framework. The results showed that: (a) there was significant and increasing positive spatiotemporal correlation among county-level economic growth; (b) local spatiotemporal correlation pattern demonstrated a high–high cluster at the eastern coast, and low–low dispersion in the vast central and western regions; (c) changes in LISA time trajectory revealed that economic growth in the coastal urban agglomeration and Inner Mongolia was more dynamic, indicating the emergence of a local spatial structure locking feature and trajectory dependence; and (d) industrialization and informatization were the two primary contributors to county economic growth. Our study suggests that Chinese government should construct network channels linking the central region with eastern China, cultivate economic growth poles and growth axis, and focus on technological innovation to unlock path dependence in county economic growth.     

基于生态足迹的河南省2000—2010年可持续测度与分析

基于生态足迹模型,计算了河南省2000—2010年的人均生态足迹、人均生态承载力,通过生态赤字、生态承压度与万元GDP生态足迹进行可持续发展水平分析。研究结果表明：（1）2000—2010年11年间河南省人均生态承载力由0.5318 hm²增加到0.8220 hm²,除2003年外均处于上升趋势中;（2）人均生态足迹总体处于上升趋势中,其中人均生物足迹先降后升,能源足迹不断上升,建设用地足迹增速最快,化石能源用地足迹比重最大;（3）11年间人均生态赤字由0.2479 hm²增加到0.5238 hm²,处于上升趋势中,经济发展始终处于不可持续状态,生态承压度经历了反复的下降与上升过程;（4）万元GDP生态足迹不断下降,由2000年的1.4640 km²下降到2010年的0.5481 km²。中原经济区建设契机下为实现河南省可持续发展,应不断提高农业生产效率,打造农业强省;优化产业结构,保证经济质量提高;践行生态理念,引导绿色生产与消费。     

The persistence of inter‐regional hierarchy in technology transfer networks: An analysis of Chinese patent licensing data

This paper asks whether the technological development of a nation reduces the inter‐regional hierarchy in knowledge flow. We examine two scenarios that are the alternative to each other. The first is what we call the globalization of regional innovation system/weakening of inter‐regional hierarchy scenario: As many regions develop their niches in the global economy, the national “anchor” region loses its relative importance as the importer and distributor of new knowledge, rendering the domestic inter‐regional hierarchy less significant as a result. The second scenario is the globalization of national innovation system/persistence of inter‐regional hierarchy. The nation’s traditional anchor region becomes even more active in importing technology and distributing it to other regions of the country. To test which scenario is closer to reality, we employ social network metrics to analyse inter‐regional technology diffusion networks using Chinese patent licensing data for the 1998–2013 period. Our findings support the second scenario, showing that the influence of the traditional anchor region persists in the hierarchical network structure as new cities enter the network. We found five anchor regions: the three usual suspects—Beijing, Shanghai and Shenzhen—plus two that were slightly less expected—Dongguan and Suzhou.     

Remittances sent by a growing altruistic diaspora: How do they grow over time?

Abstract: This paper investigates theoretically the time pattern of remittances sent home by a growing diaspora of emigrants who are motivated by altruism rather than pure self‐interest. Migrants are assumed to care about the consumption of home‐resident family members as well as their own welfare. Hence, remittance effort will depend upon the ratios of per capita income and income growth rates between the host country and the home country. Effort will depend also on the number of emigrants sending back remittances to each home‐resident household. In general, the effect of remittances is to sustain growth of consumption per capita in the home country above the growth rate of per capita GDP. A priori, there is no necessary tendency for remittance effort to rise or fall over time. Falling remittance amounts per migrant may occur as the diaspora grows relative to the home population, but should not be treated as evidence of so‐called ‘remittance fatigue’. A number of feasible scenarios are traced out, and some opportunities are identified to use statistical tests to adjudicate between self‐interest and altruism as motives for sending remittances.