Papers in Evolutionary Economic Geography

October 28, 2009

#09.17 Regional Factors and Innovativeness – An Empirical Analysis of Four German Industries

Tom Broekel and Thomas Brenner

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A growing body of work emphasizes the importance of regional factors for regional innovativeness. In this paper, about seventy variables approximating the social-economic characteristics of regions are aggregated to twelve regional factors. In four industry-specific set-ups their influence on firms’ innovativeness is tested. The study confirms that inter-industrial differences exist in the importance of these factors. In the empirical analyses a log-linear model is compared with a linear approach. While both are theoretically problematic it is shown that the log-linear model performs better in the empirical assessment.

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