Complementarity between Local Knowledge and Internationalization in Regional Technological Progress

29 Pages Posted: 19 Oct 2006

See all articles by Enrique López-Bazo

Enrique López-Bazo

University of Barcelona, AQR

Francisco Requena

University of Valencia - Department of Applied Economics II

Guadalupe Serrano

University of Valencia - Department of Economic Analysis

Abstract

Trade, foreign direct investment, and inter-regional R&D spillovers facilitate competition, the spread of knowledge, and the adoption of more advanced technologies, which in turn hastens total factor productivity (TFP) growth. The spread of these efficiency gains from internationalization requires a sufficient local knowledge to enable them to be adapted to the domestic productive environment. Thus, higher local knowledge and internationalization will lead to TFP growth, and the greater the complementarity between variables the higher the TFP growth. We test the complementarity hypothesis using Spanish regional data over the period 1980-1995 in which both regional local knowledge and internationalization experienced a notable increase.

Suggested Citation

López-Bazo, Enrique and Requena Silvente, Francisco and Serrano, Guadalupe, Complementarity between Local Knowledge and Internationalization in Regional Technological Progress. Journal of Regional Science, Vol. 46, No. 5, pp. 901-929, December 2006, Available at SSRN: https://ssrn.com/abstract=938571 or http://dx.doi.org/10.1111/j.1467-9787.2006.00490.x

Enrique López-Bazo (Contact Author)

University of Barcelona, AQR ( email )

Av. Diagonal 690
Barcelona, E-08034
Spain

Francisco Requena Silvente

University of Valencia - Department of Applied Economics II ( email )

Edifici Departamental Oriental
Avda. dels Tarongers, S/N
46022 Valencia
Spain
+34 963 828 353 (Phone)
+34 96 3828 354 (Fax)

HOME PAGE: http://www.uv.es/frequena/

Guadalupe Serrano

University of Valencia - Department of Economic Analysis ( email )

Campus de los Naranjos
46022 Valencia
Spain

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