nep-geo New Economics Papers
on Economic Geography
Issue of 2016‒03‒29
nine papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Growth agglomeration effects in spatially interdependent Latin American regions By Carolina Guevara
  2. Agglomeration of knowledge in the German regional economy By Krenz, Astrid
  3. (Un)Related Variety and Employment Growth at the Sub-Regional Level By Matthias Firgo; Peter Mayerhofer
  4. Agglomeration and innovation By Carlino, Gerald; Kerr, William R.
  5. Opening up the innovation system framework towards new actors and institutions By Warnke, Philine; Koschatzky, Knut; Dönitz, Ewa; Zenker, Andrea; Stahlecker, Thomas; Som, Oliver; Cuhls, Kerstin; Güth, Sandra
  6. Innovation and Immigration – Insights from a Placement Policy By Jahn, Vera; Steinhardt, Max Friedrich
  7. In tandem for cohesion?: synergies and conflicts between regional and agricultural policies of the European Union By Riccardo Crescenzi; Fabrizio De Filippis; Fabio Pierangeli
  8. Do welfare dependent neighbors matter for individual welfare dependency? By Bauer, Thomas K.; Dang, Rui
  9. Who benefits from public housing? By Eerola, Essi; Saarimaa, Tuukka

  1. By: Carolina Guevara (Université de Lyon, Lyon F- 69007, France; CNRS, GATE L-SE, Ecully, F- 69130, France; Université J. Monnet, Saint-Etienne, F- 42000, France
    Abstract: We investigate the effect of agglomeration on regional growth in Latin America, using panel data and spatial panel data techniques. By exploring the role of development in the agglomeration-growth relationship, we find evidence of the Williamson’s hypothesis : agglomeration growth effects are magnified in less-developed regions. Moreover, we measure the spatial effects of agglomeration. They have a large geographical scope. International connections of Latin American regions are beneficial to obtain positive spatial effects of agglomeration. Nevertheless, spatial effects are stronger within countries. This finding points out the strong border effects in Latin America.
    Keywords: growth, regional data, agglomeration economies, spatial interdependence, Latin America, urbanization, development
    JEL: R11 O18 O54
    Date: 2016
  2. By: Krenz, Astrid
    Abstract: This article investigates the geographical location of workers in jobs with high-knowledge requirements in the German economy. Our analysis takes individual-level data from the German socioeconomic panel (GSOEP) and combines them with the knowledge information for different jobs that comes from the US Department of Labor. We make use of the regional information inherent to the GSOEP that can be accessed only through a special user contract. High-knowledge employment is differently distributed across the German regions. Whereas highknowledge employment in communication and media as well as public safety is rather concentrated across regions, high-knowledge employment in computers and electronics, engineering and technology, education and training and mechanical tasks is more dispersed. Eastern German regions display a lower share of highknowledge workers in computers, engineering, mechanical tasks and public safety. The results are important to understand the regional development potential across the German regions. Our analysis detects a division in high-knowledge employment between the East and West of Germany.
    Keywords: agglomeration,knowledge,Germany
    JEL: R11 R12 J24
    Date: 2016
  3. By: Matthias Firgo; Peter Mayerhofer
    Abstract: Empirical results on the link between growth and diversity in (un)related industries proved to be highly dependent on the specific regional and temporal context. Making use of highly disaggregated employment data at the sub-regional level, we find that higher employment growth in Austria is mainly linked to unrelated variety. However, in-depth analyses by sectors and regional regimes illustrate substantial heterogeneity in the results, mainly driven by the service sector and by a large number of relatively small regions. Thus, our results argue against structural policy conclusions based on assessments across all economic sectors or different types of regions.
    Keywords: related variety, specialization, knowledge spillovers, employment growth, structural policy
    JEL: D62 J24 O33 R11 R58
    Date: 2016–03
  4. By: Carlino, Gerald; Kerr, William R.
    Abstract: This paper reviews academic research on the connections between agglomeration and innovation. We first describe the conceptual distinctions between invention and innovation. We then discuss how these factors are frequently measured in the data and note some resulting empirical regularities. Innovative activity tends to be more concentrated than industrial activity, and we discuss important findings from the literature about why this is so. We highlight the traits of cities (e.g., size, industrial diversity) that theoretical and empirical work link to innovation, and we discuss factors that help sustain these features (e.g., the localization of entrepreneurial finance).
    Keywords: agglomeration, clusters, innovation, invention, entrepreneurship
    JEL: J2 J6 L1 L2 L6 O3 R1 R3
    Date: 2015–12–10
  5. By: Warnke, Philine; Koschatzky, Knut; Dönitz, Ewa; Zenker, Andrea; Stahlecker, Thomas; Som, Oliver; Cuhls, Kerstin; Güth, Sandra
    Abstract: The paper revisits the established framework of the national and regional innovation system (NIS/RIS) in the light of recent insights from innovation research in order to increase its capacity for generating meaningful insights for policy makers and other actors wishing to influence innovation capacity of nations, regions or sectors. We review six research strands that challenge the classical NIS/RIS framework by pointing to a wider range of actors, institutions and innovation modes relevant for the innovation landscape: User innovation, social innovation, collaborative innovation, new innovation intermediaries, venture philanthropy, social and relational capital and non-R&D intensive industries. We find that each of these phenomena points to relevant contributions to national or regional innovation capacities that are not well captured by the established NIS/RIS framework. While some aspects could easily be integrated by adding some "arrows and boxes" in the graphics usually used for representing the framework, we find that several phenomena point to the need for a more fundamental revision of the innovation system framework. In particular it emerges that a distinctive assignment of actors to functions in the innovation process is no longer possible. Given, for example, the research insights on user innovation, social innovation and collaborative innovation, societal actors can no longer be assigned to the role of "demand articulation". Rather they actively contribute or sometimes even take over the generation of knowledge and innovation ideas as well as other functions such as financing, e.g. through crowdfunding activities. The broadened view on innovation also requires a wider understanding of the infrastructures and frameworks forming the enabling basis for innovation activities. Social and relational capital for instance that is deeply embedded in the cultural context of a region becomes a key enabler for trustful interactions of the diverse innovation actors such as low R&D intense firms that make huge contributions to innovation and employment but generate their knowledge through interaction with customers. The growing recognition of the economic and social relevance of collaborative and social innovation implies that collaboration platforms become as relevant infrastructures as classical technology transfer schemes. Finally the broadened view on innovation points to a wide range of intermediaries that form the backbone of an innovation system without necessarily seeing innovation as their primary purpose. As a consequence of these insights we suggest a revised innovation system framework. This system captures three types of contributions: Innovation supply and demand, innovation influx and innovation framework. Actors that may provide relevant contributions in one of these domains are grouped in open clouds, emphasizing the fluidity between functions and actors. We hope that this framework will allow for a more meaningful analysis of the innovation capacity of specific NIS/RIS systems.
    Date: 2016
  6. By: Jahn, Vera (Helmut Schmidt University, Hamburg); Steinhardt, Max Friedrich (Helmut Schmidt University, Hamburg)
    Abstract: The paper examines the impact of immigration on innovation. We exploit an immigrant placement policy which took place during the early nineties in Germany when large numbers of so called ethnic Germans entered the country. This allows us to overcome the potential bias of endogenous location decisions and to estimate how regional inflows of ethnic Germans affected patent applications over time. Although the majority of ethnic German inflows was unskilled, we do not find any evidence of a negative impact on innovations. Instead, our panel estimates suggest that immigration had no or even a positive impact on innovations.
    Keywords: Innovation; Immigration; Ethnic Germans; Quasi-experimental setting
    JEL: F22 O32 R11
    Date: 2016–02–29
  7. By: Riccardo Crescenzi; Fabrizio De Filippis; Fabio Pierangeli
    Abstract: Crescenzi, R., De Filippis, F. and Pierangeli, F. In tandem for cohesion? Synergies and conflicts between regional and agricultural policies of the European Union, Regional Studies. The paper analyses the financial allocations from the regional, rural development and agricultural policies of the European Union in order to assess their territorial coordination and synergies with the objective of territorial cohesion. Regression analysis is used to uncover the link between funds and territorial disadvantage for the 1994–2013 period. The analysis reveals that both coordination and compatibility with territorial cohesion have not always improved in response to major policy reforms. The territorial ‘vocation’ of overall community spending is weakly linked to its distribution among different policies, but it crucially depends upon appropriate ‘place-based’ allocation mechanisms.
    Keywords: common agricultural policy; European policies; European Union; regional policy; regions; rural development
    JEL: C24 O18 R11 R58
    Date: 2015
  8. By: Bauer, Thomas K.; Dang, Rui
    Abstract: This paper investigates neighborhood peer effects on individual welfare using a combined IV and control function approach. The empirical analysis is based on panel data for the years 2007-2010 constructed by enriching the geo-referenced version of the German Socio-Economic Panel (GSOEP) with aggregated zip code level-information. The results suggest that individual welfare use is positively correlated with neighborhood social benefit recipient rates, i.e. an increase in the share of neighborhood peers on social benefit by 1 percentage point raises the individual probability of welfare use by 0.97 percentage points.
    Abstract: Diese Studie untersucht den Einfluss der Nachbarschaft auf das individuelle Verhalten in Bezug auf die Inanspruchnahme von Sozialleistungen. Diesbezügliche Effekte werden durch ein linear-in-means Nachbarschaftsmodell geschätzt, das sich methodisch an der von Bayer und Ross (2009) vorgeschlagenen Identifikationsstrategie orientiert. Die empirische Analyse basiert auf einem einzigartigen Datensatz, der sich aus dem Sozioökonomischen Panel und georeferenzierten Daten, die auf PLZ-Ebene aggregiert wurden, zusammensetzt. Die Resultate deuten darauf hin, dass der individuelle Bezug von Sozialleistungen positiv mit der Empfängerquote der Nachbarschaft korreliert ist. D.h., ein 1%-iger Anstieg der Sozialleistungsempfängerquote in der Nachbarschaft erhöht ceteris paribus die individuelle Wahrscheinlichkeit des Bezuges um 0.97%.
    Keywords: Neighborhood effects,welfare use,non-random sorting
    JEL: I38 R23
    Date: 2016
  9. By: Eerola, Essi; Saarimaa, Tuukka
    Abstract: ​This paper studies how much public housing generates rent savings for the tenants, how these savings are distributed among the tenants, and whether the tenants reside in better quality neighborhoods than similar low-income private rental tenants. Our rent savings estimates are based on a hedonic regression and detailed data on the private and public rental housing units from the city of Helsinki. We estimate that the total subsidy to public housing tenants is considerable and comparable in size to the housing allowance, the main tenant-based housing program. We also find that the subsidy is less targeted towards low-income households than the housing allowance. Regarding neighborhood quality, we find that public housing tenants live in lower quality neighborhoods than similar households living in private rental housing. This result suggests that public housing is not better than the housing allowance in delivering better neighborhood quality to low-income households.
    Keywords: hedonic regression, housing policy, public housing
    JEL: H22 R21 R23
    Date: 2015–12–17

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