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.     

Innovative and Competitive Structure of Regional Economies in Turkey

Regional development theories have experienced a transition from Keynesian state‐led economic development models to development based on public–private partnerships, innovation, industrial districts, etc. With the increasing concern for innovative milieu, products, process, organizational, and institutional innovations have assumed an important place in regional development policies. All these regional development paradigms have formed the basis of the initiation of a new process in regional development called the new regionalism, which includes cumulative efforts to revitalize local economic growth. In this paper, we identify technological levels of 26 NUTS 2‐level regions according to the Organisation for Economic Co‐operation and Development (OECD)'s classification. Then, we develop an innovation and competitiveness index for Turkey by employing principal component analysis. In conclusion, we formulate some workable policy solutions and suggestions for regional economies in Turkey. According to the results, Istanbul is the most innovative and competitive region in Turkey. Ankara is becoming a regional knowledge cluster, thanks to its strong R&D infrastructure and highly qualified researchers.     

Understanding ‘resource’ conflicts in Papua New Guinea

Abstract: Papua New Guinea, with its heavy dependence on natural resources, limited economic development in the past two decades, poor record of governance and high‐profile separatist conflicts such as the Bougainville civil war, appears to be an exemplar of the ‘Resource Curse’ theory – the notion that natural resources actively undermine economic development. Using a number of examples from a range of scales, this paper argues that what appear to be ‘resource’ conflicts in Papua New Guinea are actually better conceived as conflicts around identity and social relationships. The very different conceptualisation of natural resources in most Melanesian societies – as elements of the social world as much as any external environmental sphere – means that resources become a conduit for local social and political agendas and tensions to be expressed. The nature of traditional conflict in Melanesian societies is discussed as a guide to the better management and resolution of what appear to be ‘resource’ conflicts in Papua New Guinea.     

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.     

Ethnicity,Economic Polarization and Regional Inequality in Southern Slovakia

This paper examines the relationships between ethnicity and regional economic transformation in Slovakia. It takes as its focus the position of the Hungarian minority in Slovakia in the uneven process of regional change. The paper places these issues within the context of struggles over ethnicity and ‘nation’ in post‐independence Slovakia. The paper argues that ethnicity has been a thoroughly contested issue since the collapse of ‘communism’ in Slovakia and a variety of struggles have been waged over enhancing the rights and position of the Hungarian minority population. The concentration of the Hungarian minority in the southern Slovak border regions with Hungary is examined within the context of the uneven economic impacts of the ‘transition to capitalism’. It is argued that, while the economic decline seen in many of these ‘Hungarian’ regions has impacted negatively on the local populations, the roots of these changes lie within the ways in which such regions were integrated into the state socialist regional division of labor. In particular, the role of peripheral industrialization in such regions prior to 1989, in attempting to reduce economic differences among various ethnic groups, resulted in the establishment of branch plant economies which have had difficulty in surviving since 1989. It is therefore the interweaving of the economics of regional decline and the politics of ethnicity that help us to understand the complex place of the Hungarian minority in Slovakia.     

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.     

‘Asian values’ as reverse Orientalism: Singapore

It is possible to demonstrate, using Singapore as a key example, the way in which the attribution of a set of ‘Asian values’ represented a Western project which is best labelled ‘reverse Orientalism’. This process entailed the attribution of a set of cultural values to East and Southeast Asian societies by Western social scientists in order to contrast the recent dynamic progress of Asian development with the stagnation and social disorganisation of contemporary Western economies and societies. The contrast provided legitimation for some of the nation‐building policies of political leaders in such countries as Singapore and was incorporated in attempts to identify and institutionalise core values.     

Location and the Innovation Performance of Commercial GIS Companies

This paper looks at the role of firm size, location, and in‐house research and development (R&D) in the innovation performance of U.S. firms in the commercial geographic information systems (GIS) industry. Data from a survey of 300 GIS firms are presented. The results suggest that innovation‐intensity varies directly with in‐house R&D spending (scaled as a proportion of company sales), but inversely with company size (total employment). Significant regional variations in the innovation performance of GIS firms are identified. It is argued that the geography of innovation is influenced by the spatial distribution of young and/or small firms, in that R&D‐productivity is found to vary inversely with company size. An important finding is that creative inputs to support innovation are almost evenly divided between internal and external sources. A surprising result is that the academic community is not viewed as a particularly important source of new ideas for innovative firms. The paper concludes with a discussion of the implications of the survey data for future empirical work on the GIS sector.     

Indices of Industrial Diversity and Regional Economic Composition

ABSTRACT Attempts to differentiate regions from one another, whether in social, demographic, or economic terms, have led to the development of numerous indices to summarize the economic composition of regions. This study revisits classic indices of industrial diversity to evaluate their applicability for benchmarking local and regional economies. Specifically, we explore a multivariate extension of these diversity indices for measuring concentration in an effort to evaluate their ability to accurately depict spatial relationships of county level resources for the contiguous U.S. The relative abilities of the classic indices are compared to a developed measure of resource concentration, the County Similarity Index (CS‐Index), which represents a computationally simple and flexible alternative to these indices. Results suggest the CS‐Index produces superior results to the indices evaluated, particularly with regard to the spatial relationships of county resource concentrations, which are quantified using global and local indicators of spatial association.     

Impact of Accessibility and Knowledge Creation on Local and Regional Development in Turkey

One of the fundamental aspects of the economic and social viability of the local and regional areas of Turkey is the degree to which they have access to the wider national economic and social system. Accessibility is, therefore, of major social, economic and political significance in Turkey and it directly affects Turkey's regional growth and the quality of life in local communities. However, the importance of the economic and social viability of the communities is increasingly complicated in the face of rapid global economic recession. It is argued that countries need to develop knowledge economies to compete successfully as knowledge is a critical factor for growth. This paper integrates accessibility and the importance of knowledge creation in understanding local and regional economic development. This empirical study has shown that although there is a high correlation between the accessibility index and the population figures of Turkey, accessibility to knowledge differs across Turkish provinces.     

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.     

地市级农业科研机构在区域农业科技创新中的地位与作用

地市级农业科研机构居于我国农业科技创新体系网络构架中的末端,又置身于区域农业科技成果转化与应用体系的前端,具有承上启下的重要作用。针对目前对地市级农业科研机构社会公益性地位认识的不统一,功能定位不明确的问题,从地市级农业科研机构在国家农业科技创新体系中所获得的丰硕成果、所培育农作物新品种在当地农业生产中的主导地位、为社会提供了大量公益性程度高的农业科研成果和科技服务服务以及对区域农村社会经济发展的贡献作用等方面,阐述地市级农业科研机构在区域农业科技创新中的地位与作用。     

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.     

Modelling Local and Regional Economic Development in Turkey: A “Curate's Egg”

This paper explores and unpacks the nature of the processes shaping regional economic growth in Turkey using an econometric modelling strategy. Existing empirical research in this field has focussed on regions in economically advanced and technologically innovative economies. As a consequence, the broader picture of the dynamics of regional development in less developed countries, particularly its social and political origins and the overall changes in regional inequality, has remained elusive and less clear. In this study, a set of econometric models is developed to explore the validity of a range of theoretical propositions in explaining the trajectories of regional economic change in Turkey between 2004 and 2008. Growth is calibrated in terms of employment and changing rates of unemployment in the chosen time period in the 81 provinces of Turkey. The results of the study explain that implications of the current local and regional economic development theories are a “Curate's Egg”—good in parts—because these theories are only partially relevant in the Turkish context.     

Symbolic and social dimensions in the economic production of seaweed

Abstract: Based on the thesis of ‘deagrarianisation’ of farming economies, work on sustainable rural livelihoods (SRL) has successfully captured the agency of rural producers as they diversify their livelihoods to minimise risk. SRL captures a complex interplay of local and global factors, as well as the synergies emanating from natural (environmental), economic and social capital that underpin diversification. The framework has been found useful for analyses of change in coastal, marine‐based livelihoods. However, agency at the local level implies equal power to accept and reject development interventions. The way groups diversify or use the options open to them depends as much on access to resources (the means), as on how that access is interpreted (the meaning), and the latter dimension is a creative (unpredictable) one. New introduced forms of economic activities, in this case seaweed farming, can be assigned meaning by participants that were unanticipated by change agents. Livelihood diversification through seaweed cultivation on Banggi island off Kudat, northern Sabah (East Malaysia) is not attained by economic factors alone but also by the meaning attached to the activity.     

Interrogating the production of urban space in China and Vietnam under market socialism

This paper explores two issues. First, it focuses on the question of what is the most appropriate theoretical framework for the study of the urbanisation process in China and Vietnam over the last 30 years? It is argued that Le Fefebvre's theory of the ‘production of urban space’ offers the most useful approach because the political economy it adopts helps identify the major driving forces in the urbanisation process in these formerly socialist societies. The second issue involves the investigation of the differences and similarities in the urbanisation process in the two countries that are engaged in similar processes of structural economic transformation. The conclusion suggests that despite historical and cultural differences between Vietnam and China, the urbanisation process in both countries is exhibiting converging features as both countries are adopting a form of ‘hybrid urbanisation’ that involves a combination of socialist and market economies that does not involve an inevitable move to ‘capitalism’.     

Institutional frameworks and economic activity: A comparative analysis of regional economies in Thailand,Malaysia and the Philippines

Abstract: It is increasingly recognised that both formal and informal institutions could be important variables in explaining the diversity of capitalist systems. However, less is known about the relative importance of regional institutions for regional economic activity and regional development, especially in developing countries. This article analyses the relative importance of regional institutions to regional capitalist systems in Southeast Asia, using the comparative institutional approach of ‘business systems’. Two comparisons are made that enable an analysis of the relative importance of regional institutions: one between two regional economies in the same country (Cebu and Negros Oriental in the Philippines) and one between two bordering regional economies in different countries (Satun in Thailand and Perlis in Malaysia). We investigate four sets of economic institutions: the extent of alliance coordination of supply and demand, the extent of collaboration between competitors, the extent of alliance coordination of sectors and access to finance. The results suggest that regional economic institutions are stronger in agricultural areas with relatively weak national economic institutions and that the presence of strong and enabling regional economic institutions is one of the factors that lead to taking advantage of favourable agricultural conditions, to economic growth and, ultimately, to catching up.     

Shaping a ‘New Manggarai’: Struggles over culture and tradition in an Eastern Indonesian regency1

Abstract: Policies of decentralisation and democratisation since the end of the New Order of Indonesia in 1998 have seen a major shift of economic and political attention to the regions and widespread clamouring from local communities for more power in decision making and control over local resources. This regionalisation has led to a resurgence in interest in ‘tradition’ and a shift in the understanding of ‘culture’ as it was formed during the New Order. This article looks at contestations over the use of traditional culture in the regency of Manggarai (in Flores Island, Eastern Indonesia) and how, while political elites retain an image of culture similar to the New Order, local communities struggle to reform tradition in their own way and to regain local governance.     

Make,Buy, or Both: The Innovation Sourcing Strategy Dilemma after M&A

This paper investigates the effects of mergers and acquisitions (M&A) on corporate research and development (R&D) strategies using firm‐level data on the Spanish manufacturing sector. The focus of the study is to determine whether M&A affects R&D portfolios by increasing or decreasing innovation input, such as in‐house R&D, external R&D or both. The results show that M&A has a negative and significant impact on R&D intensity, decreasing in‐house R&D and external technological sourcing. M&A enables the rationalization of R&D capacity, implying a decrease in R&D efforts. M&A negatively affects both types of R&D, but, on average, the effect is more negative on external R&D.