Papers in Evolutionary Economic Geography

April 5, 2019

# 19.11 Network dynamics in collaborative research in the EU, 2003-2017

Pierre-Alexandre Balland & Ron Boschma & Julien Ravet


Abstract: A key objective of the EU Framework Programmes for Research and Innovation is the creation of cross-country research networks. We make use of Social Network tools to describe the evolution of the EU research network across countries on the basis of unique data covering collaborative projects launched during the first four years of implementation of Horizon 2020 and its predecessor programmes, the Sixth and Seventh Framework Programme. We describe the positioning of all EU-countries in the collaborative research network, the positioning of the older member EU-15 and the newer member EU-13 countries in particular, and to what extent the network has been subject to change during the period 2003-2017. EU-15 and EU-13 countries have become more integrated, and some organizations fulfil a bridging function in the EU research network. EU-13 countries are more heavily engaged in parts of the programme on lower complexity research activities.


April 2, 2019

# 19.10 Building consensus: Shifting strategies in the territorial targeting of Turkey’s public transport investment

Davide Luca & Andrés Rodríguez-Pose


Abstract: A growing amount of research explores how the allocation of regional development monies follows electoral reasons. Yet, the existing literature on distributive politics provides different and contrasting expectations on which geographical areas will be targeted. We focus on proportional representation (PR) systems. While in such settings governments have incentives to target core districts and punish foes’, we suggest that when incumbents attempt to build a state-party image they may broaden the territorial allocation of benefits and even target opposition out-groups. We exploit data on Turkey’s public transport investment for the period 2003-2014 and in-depth interviews to provide results in support of our hypothesis.

# 19.09 Does combining different types of collaboration always benefit firms? Collaboration, complementarity and product innovation in Norway

Filed under: 2019 — Tags: , , , , — T.Broekel @ 7:27 pm

Silje Haus-Reve &  Rune Dahl Fitjar & Andrés Rodríguez-Pose


Abstract: Product innovation is widely thought to benefit from collaboration with both scientific and supply- chain partners. The combination of exploration and exploitation capacity, and of scientific and experience-based knowledge, are expected to yield multiplicative effects. However, the assumption that scientific and supply-chain collaboration are complementary and reinforce firm-level innovation has not been examined empirically. This paper tests this assumption on an unbalanced panel sample of 8337 firm observations in Norway, covering the period 2006–2010. The results of the econometric analysis go against the orthodoxy. They show that Norwegian firms do not benefit from doing “more of all” on their road to innovation. While individually both scientific and supply-chain collaboration improve the chances of firm-level innovation, there is a significant negative interaction between them. This implies that scientific and supply-chain collaboration, in contrast to what has been often highlighted, are substitutes rather than complements. The results are robust to the introduction of different controls and hold for all tested innovation outcomes: product innovation, new-to-market product innovation, and share of turnover from new products.

March 22, 2019

# 19.08 The relationship of policy induced R&D networks and inter-regional knowledge diffusion

Marcel Bednarz & Tom Broekel


Abstract: Knowledge diffusion is argued to be strongly influenced by knowledge networks and spatial structures. However, empirical studies primarily apply an indirect approach of measuring their impact. Moreover, little is known about how policy can influence the spatial diffusion of knowledge. This paper seeks to fill this gap by empirically testing the effects of policy induced knowledge networks on the propensity of inter-regional patent citations. We use patent citation data for 141 labor market regions in Germany between 2000 to 2009, which is merged with information on subsidized joint R&D projects. Based on the latter, we construct a network of subsidized R&D collaboration. Its impact on inter-regional patent citations is evaluated with binomial and negative binomial regression models. Our findings do not indicate that inter- regional network links created by public R&D subsidies facilitate patent citations and hence, inter-regional knowledge diffusion.

February 11, 2019

# 19.07 Cluster externalities, firm capabilities, and the recessionary shock: How the macro-to-micro-transition shapes firm performance during stable times and times of crisis

Christian Hundt & Linus Holtermann & Jonas Steeger & Johannes Bersch


Abstract: In this paper, we examine the macro-to-micro-transition of cluster externalities to firms and how it is affected by the macroeconomic instability caused by the recessionary shock of 2008/2009. Using data from 16,166 manufacturing and business services firms nested in 390 German regions, we employ within-firm regression techniques to estimate the impact of cross-level interactions between firm- and cluster-level determinants on phase-related differences in firm performance between a pre-crisis (2004-2007) and a crisis period (2009-2011).

The empirical results validate the existence of a macro-to-micro-transition that evolves best in the case of broad firm-level capabilities and variety-driven externalities. Furthermore, the results indicate that the transition strongly depends on the macroeconomic cycle. While the transition particularly benefits from a stable macroeconomic environment (2004-2007), its mechanisms are interrupted when being exposed to economicturmoil (2009-2011). Yet, the crisis-induced interruption of the transition is mainly restricted to the national recession in 2009. As soon as the macroeconomic pressure diminishes (2010-2011), we observe a reversion of the transmission mechanisms to the pre-crisis level.

Our study contributes to the existing literature by corroborating previous findings that the economic performance of firms depends on a working macro-to-micro transition of external resources, which presupposes sufficient cluster externalities and adequate firm-level combinative capabilities.In contrast to previous studies on this topic, the transition mechanism is not modeled as time-invariant. Instead, it is coupled tothe prevailing macroeconomic regime.

January 21, 2019

# 19.02 Well-being, political decentralisation and governance quality in Europe

Filed under: 2019 — T.Broekel @ 11:58 am

Andrés Rodríguez-Pose and Vassilis Tselios



Abstract: European nations allocate public sector resources with the general aim of increasing the well-being and welfare of their citizens through a fair and efficient distribution of these public goods and services. However, ‘who’ delivers these goods and services and ‘how well’ they are delivered are essential in determining outcomes in terms of well-being. Drawing on data from the European Social Survey database, this paper uses Amartya Sen’s social welfare index framework – accounting for the trade-off between the maximization of public sector resources and an equitable distribution of these resources – to examine the influence of political decentralisation (‘who’ delivers the resources) and whether this influence is moderated by governance quality (‘how well’ they are delivered) on individual subjective well-being. The findings of the econometric analysis reveal that decentralisation does not always lead to higher well-being, as the benefits of political decentralisation are highly mediated by the quality of national governance. In countries with high governance quality, political decentralisation results in a greater satisfaction with health provision, while in lower quality governance countries, a more decentralized government can increase the overall satisfaction with life, the economy, government, democracy and the provision of education, but not necessarily with health-related services.

# 19.06 Relatedness and the Resource Curse Is there a liability of relatedness?

Rune Dahl Fitjar and Bram Timmermans



Abstract: The literature on relatedness emphasizes the benefits of co-location with related industries, as knowledge spillovers promote innovation and regional branching. However, resource competition between industries which rely on related capabilities has not largely been considered. The resource curse literature argues that resource competition produces adverse effects for other industries when extractive industries expand. However, this literature has not considered whether this depends on the relatedness between the resource industry and these other industries. This paper brings together these two strands of literature. We examine the relationship between the oil and gas industry in Norway and its related industries during a period of rising oil prices and an expansion of the oil and gas industries. We conduct the analysis at the national scale, as well as in the most oil-specialised region of Stavanger, in order to examine how these dynamics play out at a regional, as well as national level. An analysis of the labor flow between the petroleum and related industries using a Norwegian linked employer-employee database reveals that higher wages increase the likelihood of moving from related industries into petroleum, but reduce the likelihood of moving in the opposite direction. The petroleum industry recruits the most productive workers from related industries and returns its least productive workers. Consequently, we argue that relatedness is not an even playing field: There may be losers, as well as winners, from relatedness.

# 19.05 The network effects of NGOs on social capital and innovation of smallholder farmers. A case study in Peru

Filed under: 2019 — Tags: , , , , , — T.Broekel @ 8:05 am

D. Hartmann and A. Arata and M. Bezerra and F.L. Pinheiro



Abstract: The impact of Non-Government Organizations (NGOs) on the local development of rural areas has rarely been explored empirically. Here we employ methods from network science to evaluate the impact of an NGO’s activities on the social capital and innovation of three Peruvian farming communities between 2003 and 2018. Data was collected from in-depth interviews with farmers, including information about the farmers’ socioeconomic characteristics, types of interactions with the NGO, and innovations in processes, products, marketing, and organization. Our findings show that the NGO had a significant impact on the local social cohesion and innovation performance of the farmers. The NGO helped to connect farmers from different villages, provided access to external knowledge, and facilitated the establishment of a local productive organization. Yet, the NGO also changed the local power structure by becoming the most central agent in the local innovation system. The NGO’s centrality declined, though, at later stages of the development project as local agents took over the role of the NGO. Moreover, econometric results show that having a link with the NGO is associated with a significantly more central role of the farmers in the local network. However, only close cooperation with the NGO, such as membership in the local productive organization or active participation in technical training workshops was associated with a significantly higher innovation performance. Finally, our study demonstrates that methods from network science can help to empirically evaluate and monitor the effects of NGOs on local development at different stages of their development interventions.

# 19.04 Government institutions and the dynamics of urban growth in China

Filed under: 2019 — Tags: , , , , — T.Broekel @ 7:58 am

Andrés Rodríguez-Pose and Min Zhang



Abstract: Economic growth in China in recent decades has largely rested on the dynamism of its cities. High economic growth has coincided with measures aimed at improving the efficiency of local governments and with a mounting political drive to curb corruption. Yet the connection between government institutions and urban growth in China remains poorly understood. This paper is the first to look into the connection between government efficiency and corruption, on the one hand, and urban growth in China, on the other and to assess what is the role of institutions relative to more traditional factors for economic growth in Chinese cities. Using panel data for 283 cities over the period between 2003 and 2014, the results show that urban growth in China is a consequence of a combination of favourable human capital, innovation, density, local conditions, foreign direct investment (FDI), and, city-level government institutions. Both government quality – especially for those cities with the best governments – and the fight against corruption at the city level have a direct effect on urban growth. Measures to tackle corruption at the provincial level matter in a more indirect way, by raising or lowering the returns of other growth-inducing factors.

# 19.03 The missing ingredient: Distance Internal migration and its long-term economic impact in the United States

Filed under: 2019 — Tags: , , , , , — T.Broekel @ 7:55 am

Viola von Berlepsch and Andrés Rodríguez-Pose



Abstract: This paper examines if internal migrants at the turn of the 20th century have influenced the long-term economic development of the counties where they settled over 100 years ago. Using Census microdata from 1880 and 1910, the distance travelled by American-born migrants between birthplace and county of residence is examined to assess its relevance for the economic development of US counties today. The settlement patterns of domestic migrants across the 48 continental states are then linked to current county-level development. Factors influencing both migration at the time and the level of development of the county today are controlled for. The results of the analysis underline the economic importance of internal migration. Counties that attracted American-born migrants more than 100 years ago are significantly richer today. Moreover, distance is crucial for the impact of internal migration on long-term economic development; the larger the distance travelled by domestic migrants, the greater the long-term economic impact on the receiving territories.

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