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

Pub. Date
01 June, 2009

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. These findings are robust to alternative estimation procedures, as they arise from both OLS regressions with country demeaned variables and ML estimations of different spatial models.