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The goal of this paper is twofold. The first goal is to incorporate spatial structure within shift-share analysis, to take into account interregional interaction in the decomposition analysis. Secondly, this paper develops a taxonomy of regional growth rate decompositions. A taxonomy of the spatial structure is presented; it comprises twenty alternative decomposition structures, including the original standard shift-share analysis as well as six alternative structures outlined in the taxonomy for non-spatial structures. [ABSTRACT FROM AUTHOR]

In this paper, a formal model for the relationship between innovation and growth in European Union regions is developed drawing upon the theoretical contribution of the systems of innovation approach. The model combines the analytical approach of the regional growth models with the insights of the systemic approach. The cross-sectional analysis, covering all the Enlarged Europe (EU-25) regions (for which data are available), shows that regional innovative activities (for which a specific measure is developed) play a significant role in determining differential regional growth patterns. Furthermore, the model sheds light on how geographical accessibility and human capital accumulation, by shaping the regional system of innovation, interact (in a statistically significant way) with local innovative activities, thus allowing them to be more (or less) effectively translated into economic growth. The paper shows that an increase in innovative effort is not necessarily likely to produce the same effect in all EU-25 regions. Indeed, the empirical analysis suggests that in order to allow innovative efforts in peripheral regions to be as productive as in core areas, they need to be complemented by huge investments in human capital. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to point out some shortcomings of traditional approaches to the study of ‘knowledge spillovers’ and to suggest an alternative based on how knowledge is actually created and exchanged by individuals. Which regional setting is the best incubator of technological change and economic growth? Is this promoted by regional diversity or specialization of economic activity? This study will include economic analyses of geographically localized ‘dynamic knowledge externalities, Jacob's externalities, or adding new work to old, industrial classification and technology combination, human creativity, and technology combination through human action and imaginative use of resources. Employees add to, or switch their product line; individuals move from one type of production to another; individuals observe a product/process in another setting and incorporate it; individuals possessing different skills and working for different firms collaborate; and urban diversity and resource collaboration are utilized. It is concluded that problems are solved through the combination of previously unrelated things and that promoting regional specialization at the expense of spontaneously evolved local diversity might be a counter-productive policy. [ABSTRACT FROM AUTHOR]

Desmet, Gumpert, and Ortίn have analyzed regional development using the Ricardian model or the Heckscher–Ohlin theorem. However, aspects such as consideration of combined wages, substitution elasticities, marginal costs, fixed costs, and number of companies were completely ignored. This study investigates the underdevelopment of regions in light of Krugman's core–peripheral model. The extension of the model is intended to analyze the aspects that have so far been ignored and their influence on the benefits of the two regions. The following aspects characterize the model. Two regions with two sectors are considered for the model. The regions are characterized by different technological equipment. The first region is industrial. The second region has an agricultural character. When a new technology is available, both regions can benefit under certain conditions. The financial transfers lead to a convergence of wages. [ABSTRACT FROM AUTHOR]

This article investigates the role of universities in the economic development of American metropolitan regions during the Great Recession (2007-2009) and the growth period prior to it (2001-2007). It develops a supply-side conceptual framework on the role of universities in technology-led regional economic development. Specifically, this framework highlights three 'university products' that can be explicitly defined and measured: educational services, business services, and new knowledge or technology. The empirical test of this conceptual framework finds that the presence of universities is positively associated with regional economic performance during the Great Recession, mainly via the educational services product. Findings indicate that regions with a higher level of university science, technology, engineering, and mathematics graduates are more resilient to the economic recession. [ABSTRACT FROM AUTHOR]

The objective of this article is to present a new way to incorporate the sectoral dimension within the components of regional growth provided by the traditional shift–share analysis. The new methodology elaborates the way that the dynamics of a specific sector in a region are influenced by the performance of other sectors, the latter decomposed between national, structural, and differential effects. To illustrate this extension of the shift–share method, an application is provided using data for the Spanish region of Extremadura for the period 1990–2004. The results highlight how these new components can shed new insights into the analysis of sectoral and regional economic growth processes. [ABSTRACT FROM AUTHOR]

Although the final demand-oriented export base paradigm dominates economic development theory and practice, its usefulness is increasingly questioned because of the changing structure of modern economies, empirical critiques of export-led growth strategies, and studies that decompose the actual sources of growth. The importance of service industries, especially local services and their role in inducing economic growth, requires a measure that includes both forward and backward linkages to empirically account for the complete role of an industry. Using data for New York State, we demonstrate how the input-output-based method of hypothetical extraction can more appropriately measure the economic linkage of a broader range of contemporary economic sectors (including services) than traditional, final demand-induced, backward-linkage multipliers. Our analysis provides empirical support for greater economic development attention to be directed toward local services. [ABSTRACT FROM AUTHOR]

Attempts to develop meaningful definitions and measures of economic diversity and diversification. Functional relationships between diversity, diversification and economic performance; Input-output model; Portfolio theory.