Innovation in Central and Eastern European Regions: Does EU Framework Program participation lead to better innovative performance?

Varga, Attila and Sebestyén, Tamás (2013) Innovation in Central and Eastern European Regions: Does EU Framework Program participation lead to better innovative performance? In: The European Union's Seventh Framework Programme (FP7/2007-2013) under grant agreement “Growth-Innovation-Competitiveness: Fostering Cohesion in Central and Eastern Europe” (GRNCOH).

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Abstract

Abstract: In this paper we raise the question whether knowledge transferred from long distances via research networks can somehow compensate lagging regions in Central and Eastern Europe for their low levels of locally agglomerated knowledge. To empirically investigate this problem we choose research networks subsidized by the European Framework Programs. Within the frame of the Romerian knowledge production function we test if the quality of regions’ individual FP networks has any relationship with regional patenting. We carried out the analysis with two sub-samples covering the years 1998-2009: CEE-Objective 1 regions (51 regions) and non-CEE regions (211 regions). The selected research area of study was the broad area of quality of life (QOL). We measure extra-regional knowledge accessible via FP research networks by the index of Ego Network Quality. We also control for localized knowledge flows via a systematic panel spatial econometric methodology. We found that important differences exist between CEE-Objective 1 and non-CEE regions with respect to FP network learning in patenting. While knowledge transferred from FP networks positively influences the impact of FP research subsidies on regional innovation in CEE-Objective 1 regions, network knowledge does not turn out to be a significant input in patenting in regions of the old member states.

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