The Geography of Innovation in the Luxembourg Metropolitan Region: An Intra-Regional Approach

Abstract:     
The main objective of the paper is to analyze the local determinants of innovation in the Luxembourg metropolitan region. We are particularly interested in the impact of the local milieu and characteristics of firms. Our paper addresses two specific research questions. Firstly, we examine the extent to which geographic space is a determinant of innovation for five intra-regional units based on an aggregation of municipalities. Secondly, we investigate whether innovation is dependent on accessibility to the mean center. In both cases, we examine innovation propensity and innovation output using micro-data from the Community Innovation Survey (CIS 2006) carried out in Luxembourg. The paper shows that space matters both in terms of spatial units and accessibility within the intra-regional context of Luxembourg. It provides, in particular, first evidence of a close link between the effects on innovation at the intra-regional level of firms’ profiles and agglomeration externalities. Both favor innovation for firms from Luxembourg-City and, to a lesser extent, from the Suburban Area.

Number of Pages in PDF File: 28

Keywords: intra-regional innovation, firms’ profile, location factors, local polynomial regression, Luxembourg metropolitan region

JEL Classification: O31, O38, C14, R11, R12

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