The Long-Run Relationship Between R&D and Regional Knowledge: The Case of France, Germany, Italy and Spain

23 Pages Posted: 18 Dec 2015 Last revised: 30 Sep 2016

See all articles by Marcos Sanso-Navarro

Marcos Sanso-Navarro

Universidad de Zaragoza

María Vera-Cabello

Centro Universitario de la Defensa de Zaragoza

Date Written: September 25, 2016

Abstract

This paper incorporates time-dependence into a regional knowledge production function framework. Within this setup, the long-run dynamic behaviour of R&D and knowledge has been analysed in four European countries - France, Germany, Italy and Spain - using unit root tests and cointegration techniques. We find that the regional stock of knowledge is cointegrated with R&D employment and external knowledge. Nonetheless, knowledge spillovers play a more important role in the generation and accumulation of new ideas. This suggests that innovation policies should aim at enhancing regional absorptive capacity through improvements in education and training.

Keywords: Knowledge production, heterogeneous panels, unit roots, cointegration, cross-sectional dependence

JEL Classification: C33, O31, O47, R11

Suggested Citation

Sanso-Navarro, Marcos and Vera-Cabello, María, The Long-Run Relationship Between R&D and Regional Knowledge: The Case of France, Germany, Italy and Spain (September 25, 2016). Available at SSRN: https://ssrn.com/abstract=2704818 or http://dx.doi.org/10.2139/ssrn.2704818

Marcos Sanso-Navarro (Contact Author)

Universidad de Zaragoza ( email )

Facultad de Economía y Empresa
Departamento de Análisis Económico
Zaragoza, 50005
Spain
+34 876 554 629 (Phone)

HOME PAGE: http://personal.unizar.es/marcossn

María Vera-Cabello

Centro Universitario de la Defensa de Zaragoza ( email )

Academia General Militar, Ctra. de Huesca, s/n
Zaragoza, Zaragoza 50009
Spain

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