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In the last year, a central issue in regional economic growth debate has been represented by the empirical analysis of Verdoorn's law related to the long-term dynamic relationship between the rate of growth in output and the productivity growth due to increasing returns. Several papers have tested Verdoorn's law on European countries as well as many other world economies. Recently, attempts have been made to provide foundations for a spatial version of the original law specification. The main contributions were dedicated to the inclusion of spatial dependence in the economic model. Surprisingly, in the literature on Verdoom's law the analysis of the spatial heterogeneity is not often considered. The aim of this paper is the regional analysis of the spatial dependence and heterogeneity in Verdoorn's law, identifying spatial regimes that can be interpreted as clusters of productivity growth in European regions at NUTS 2 level. To pursue this objective, an optimization algorithm for the identification of groups is used. This constitutes a modified version of Simulated Annealing. [ABSTRACT FROM AUTHOR]

Canada, the U.S., and Australia have recently experienced an increased regional dispersion of entering immigrants. American research suggests that a mixture of economic push factors (away from states like California) and pull factors (toward states with growth of low-wage jobs) and changing government policies and regulations contributed to the development of the New Gateways. Very few studies have been conducted to determine why the regional dispersion of entering immigrants occurred in Canada. This paper assesses the extent to which changes in immigration selection programs, notably, the Provincial Nominee Programs, contributed to the regional dispersion of entering immigrants. Using data from immigrant landing records, this study shows that different factors accounted for changes in the share of immigrants settling in different destinations. Changes in immigration selection programs played the primary role in the increasing numbers going to Saskatchewan and Manitoba, although improving economic conditions may have played an indirect role. Shifts in immigrant source regions were an important factor in the decrease in immigration to Toronto and in the increase to Montréal. Economic conditions likely played a significant role in the changes in the shares of new immigrants going to Toronto, Montréal, Calgary, and Edmonton. [ABSTRACT FROM AUTHOR]

This paper looks at the factors driving regional growth in Mexico, paying special attention to the potentially growth-enhancing role of innovation and innovation policy. The analysis combines innovation variables with indicators linked to the formation of adequate social conditions for innovation (the social filter), and spillovers for 31 Mexican states and the Mexico City capital district (the D istrito F ederal) during the period 2000-2010. The results indicate that regional economic growth across Mexican states stems from direct investment in research and development ( R& D) in areas with favorable social filters and which can benefit not only from knowledge spillovers, but also from being surrounded by rich neighbors with good social conditions. The results stress that, although Mexican innovation policy has been relatively well targeted in order to generate greater economic growth, its relatively modest size may have undermined the attainment of its main objectives. [ABSTRACT FROM AUTHOR]

It has often been argued that 'there is something in the air' which makes firms in high-density environments-such as cities or clusters-more innovative. The co-location of firms facilitates the emergence of serendipity and casual encounters which promote innovation in firms. We assess this hypothesis using data from a survey of Norwegian firms engaged in innovation partnerships. The results indicate that there may be 'much less in the air' than is generally assumed in the literature. The relationships conducive to innovation by Norwegian firms emerged as a consequence of purpose-built searches and had little to do with chance, serendipity, or 'being there.' [ABSTRACT FROM AUTHOR]