Localised knowledge inputs and innovation: The role of spatially mediated knowledge spillovers in Hungary

Varga, A. (2007) Localised knowledge inputs and innovation: The role of spatially mediated knowledge spillovers in Hungary. Acta Oeconomica, 57 (1). pp. 1-20. ISSN 0001-6373

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Abstract

The role of spatial proximity to innovation inputs (such as industrial R&D or academic research) in technological change has been widely studied in the economics literature. However, most of the papers in this research area are based on data for technologically advanced countries such as the US and parts of the EU. During transition recently accessed countries of Central Europe have undergone a dramatic restructuring process that significantly affected their systems of innovation: R&D expenditures, academic research and patenting activity have declined. According to some research results FDI constituted the most significant drive of technological change during the 1990s. Is there any role of spatially mediated knowledge spillovers in innovation in these countries? To what extent regional systems of innovation have started to develop in Central European new EU member countries? These questions have rarely been raised in the relevant literature. Using regional data this paper adopts econometric modelling techniques commonly applied in innovation research to study the role of localised knowledge inputs in technological change in Hungary.

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