Journal article/book/chapter

Knowledge Capabilities and Regional Growth: an Econometric Analysis for European Developed Regions

By means of different econometric techniques, this paper estimates the relationship between the knowledge capabilities (i.e. the extent of R&D activities and higher education) and the GDP per capita growth of European developed regions. Along with structural features and initial income levels, our estimations account for the presence of spatial dependence. We find that regional growth is positively affected by the intensity of R&D and the share of adults with tertiary education.

The long-run impact of ICT

This paper examines the growth impact of digital capital in the US and the EU-15 countries from a long-run perspective. It estimates the elasticity of output with respect to Information and Communication Technology (ICT) within a production function framework, by means of a panel cointegration analysis. ICT capital is found to significantly spur GDP growth over time, and above its income share. This sharply contrasts with existing aggregate evidence, and with the view that the growth impact of this factor is confined to the contribution given to the productivity resurgence of the 1990s.

Editorial Note

The Review of Economics and Institutions is the New Series of Economia, Società e Istituzioni, edited by Luiss University Press up to 2005. The New Series is published by the University of Perugia maintaining the founders' idea that political economy scholars should aim at understanding social and economic issues in their concreteness and completeness, in their historical perspective and within their institutional framework. The nature and scope of the Review remain general.

Product variety, product quality, and evidence of endogenous growth

Using US manufacturing industry data, we re-examine evidence of first- and second-generation models of R&D-based endogenous growth focusing on innovation (patent) quality. We show that Schumpeterian growth theories perform better than semi-endogenous growth models.

Boosting Manufacturing Productivity Through R&D: International Comparisons with Special Focus on Italy

Using data for twelve manufacturing industries of five developed countries over the period 1980–2002, we perform a dynamic panel estimation of the long-run elasticity of TFP with respect to R&D capital. The highest elasticity is found for the US (0.39), followed by Germany (0.29–32); intermediate values are achieved by France (0.19–0.21) and Spain (0.19), while Italy records the lowest R&D impact (0.08–0.12).

Inventive productivity and patent quality: Evidence from Italian inventors

This paper examines the inventive performances of a regional set of Italian inventors. After stressing that the distribution of the inventors’ productivity is extremely skewed, we find that patent productivity is not influenced by individual characteristics, but it is higher for the inventors working in teams or in large firms with greater patent portfolios. Instead, patent quality is associated with some individual features such as age, gender and level of education.

Looking into the black box of Schumpeterian growth theories: An empirical assessment of R&D races

This paper assesses whether the most important R&D technologies at the roots of secondgeneration Schumpeterian growth theories are consistent with innovation statistics. Using US manufacturing industry data, we estimate some systems of simultaneous equations modeling the innovation functions based on variety expansion and diminishing technological opportunities. Our findings indicate that the framework characterized by the increasing difficulty of R&D fits US data better. We discuss the implications of the results for the evolution of the endogenous growth literature.

The Returns to Scarce Talent: Footedness and Player Remuneration in European Soccer

We investigate the salary returns to the ability to play football with both feet. The majority of footballers are predominantly right footed. Using two data sets, a cross-section of footballers in the five main European leagues and a panel of players in the German Bundesliga, we find robust evidence of a substantial salary premium for two-footed ability, even after controlling for available player performance measures. We assess how this premium varies across the salary distribution and by player position.

Does high involvement management lead to higher pay?

Using nationally representative survey data for Finnish employees linked to register
data on their wages and work histories we find that wage effects of high involvement management
(HIM) practices are generally positive and significant. However, employees with better
wage and work histories are more likely to enter HIM jobs.The wage premium falls substantially
having accounted for employees’work histories, which suggests that existing studies’ estimates

Review of Market Environment Indicators

INDICSER Review Paper No. 2


Work Package 3 of the INDICSER project will construct indicators that describe the market environment

interpreted in a general sense to cover the markets in which service sector firms deliver outputs and