Regional Growth, Innovation, and Latent Nonlinear Effects

Sanso‐Navarro, Marcos; Vera-Cabello, María

doi:10.1111/jors.12279

Cited by 9 publications

(12 citation statements)

References 61 publications

(112 reference statements)

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“…Parameters in Equation can be estimated with different alternatives (see Henderson & Parmeter, ). In particular, the methods introduced by Racine and Li () are becoming increasingly popular because of their attractive properties and, as a consequence, empirical applications in the field of economics have burgeoned in recent years (see Henderson et al, , ; Peiró‐Palomino, ; Sanso‐Navarro & Vera‐Cabello, ). Following these contributions, we use the local‐linear least squares (LLLS) estimator, based on ‘generalized product kernels’ and providing optimal estimates for mixed data sets with both continuous and categorical variables.…”

Section: Methodological Notesmentioning

confidence: 99%

“…In this regard, recent evidence for the EU regions suggests that there are good reasons to rely on more flexible models able to deal with parameter heterogeneity. Peiró‐Palomino () found nonlinear and heterogeneous effects for associations on regional growth, while Sanso‐Navarro and Vera‐Cabello () found analogous results for the case of innovation and growth. Similarly, we might expect regional effects of associations on innovation to differ.…”

Section: Introductionmentioning

confidence: 92%

“…Following common practice in the previous literature (see, for example, Akçomak & Müller‐Zick, ; Akçomak & Ter Weel, ; Crescenzi & Rodríguez‐Pose, ; Rodríguez‐Pose & Crescenzi, ; Sanso‐Navarro & Vera‐Cabello, ), we consider an indicator of the outcomes of the innovation efforts, namely the number of patents per million inhabitants (in logs), provided by the European Patent Office (EPO). The EPO classifies patents according to the residence of the inventor and, in cases of more than one inventor, each region receives a proportional quota.…”

Section: Empirical Framework and Descriptive Statisticsmentioning

confidence: 99%

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The geography of social capital and innovation in the European Union

Peiró‐Palomino

2019

Papers in Regional Science

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This paper assesses the role of the associational activity dimension of social capital in regional innovation for 257 EU 28 regions in the pre-crisis (2000)(2001)(2002)(2003)(2004)(2005)(2006)(2007) and the crisis (2008-2012) period. The analysis is carried out using flexible non-parametric kernel regressions, which allow for exploring heterogeneity across space and over time. The results show that effects widely differ across regions, but no differences are found between periods. In particular, the largest effects are found for less developed and transition regions from the periphery. In contrast, for most of the developed regions in the core of Europe the impact is non-significant. These results might be useful for policy design in the H2020 framework.

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Section: Methodological Notesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 92%

Section: Empirical Framework and Descriptive Statisticsmentioning

confidence: 99%

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The geography of social capital and innovation in the European Union

Peiró‐Palomino

2019

Papers in Regional Science

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“…What is interesting is that Capello and Lenzi [5] reveal that regions with a high level of human potential development can gain additional TFP gains from innovation. The complementary relationship between innovation and human capital capabilities is also advocated by Sanso-Navarro and Vera-Cabello [55] who study nonlinearities in regional growth.…”

Section: Resultsmentioning

confidence: 96%

“…Sustainability 2020, 12, 1808 10 of 14 human capital capabilities is also advocated by Sanso-Navarro and Vera-Cabello [55] who study nonlinearities in regional growth. Application of the fixed-effect model means that significant specific factors influencing TFP for regions are not included in the model.…”

Section: Resultsmentioning

confidence: 99%

Nonlinear Effects of Human Capital and R&D on TFP: Evidence from European Regions

Kijek

2020

Sustainability

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The aim of the paper is to study the impact of human capital and R&D on Total Factor Productivity (TFP) from a nonlinear perspective. In the spirit of the theory of innovation-driven growth and models with thresholds in human capital and low-growth equilibria, we hypothesize that the impact of human capital and R&D on TFP is nonlinear. We also make an attempt to explain complementarities between R&D expenditures and human capital, applying developments in the R&D-based growth models. We use spatial panel data models to estimate the link among R&D, human capital, and TFP across the European regions between 2009 and 2014. Empirical evidence shows that there are decreasing returns to human capital and R&D in the European regional space. Moreover, R&D and human capital turn out to be strategic complements. Finally, regional TFP is found to be positively affected by TFP of neighboring regions.Sustainability 2020, 12, 1808 2 of 14 human capital that cannot be revealed using the standard linear approach. Secondly, we extend our analyses by incorporating the spatial dimension of knowledge spillovers into our empirical model. It gives a new insight into the role of geography in explaining regional TFP differences.Our article is organized in the following way. Part 2 includes the literature review and hypotheses development. Part 3 presents data and empirical models. Part 4 shows empirical findings and discussion, and Section 5 concludes and indicates directions for future research. Literature Review and Hypotheses Development The Link Between R&D and TFP: Some Stylised Facts about Possible NonlinearitiesAs generally accepted, R&D expenditures are targeted toward increasing the stock of knowledge so as to discover new applications and inventions [11]. According to the possibility of the research commercialization into commercial applications, there is a distinction between fundamental research, applied research, and development. Similarly, a distinction is made between R&D directed toward process R&D (the introduction of new methods of production) and product R&D (the invention of new and modified goods). As such, the impact of R&D on productivity is twofold. Firstly, process R&D may increase productivity by enhancing the quality or lowering the average production costs of existing goods. Secondly, product R&D may widen the range of intermediate inputs or final goods available [12].The association between R&D investments and TFP has a conceptual basis in the literature on R&D-based stream of endogenous growth models, which is rooted in the neoclassical growth theory. According to the neoclassical theory, total factor productivity reflects a shift in the production function resulting from technical progress [13]. Since technical progress is closely related to the knowledge stemming from research and development activities, endogenous technical change is regarded to be generated by formal R&D investments. The first generation of R&D-based models assumes that more R&D labor should result in more TFP growth. In other words, th...

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Financial development and innovation: Do institutions and human capital matter?

Atsu

Adams

2023

Heliyon

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Regional Growth, Innovation, and Latent Nonlinear Effects

Cited by 9 publications

References 61 publications

The geography of social capital and innovation in the European Union

The geography of social capital and innovation in the European Union

Nonlinear Effects of Human Capital and R&D on TFP: Evidence from European Regions

Financial development and innovation: Do institutions and human capital matter?

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