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Complexity and Competitiveness: Analyzing Knowledge Production's Impact on Productivity in European Metropolitan Regions

Authors: Pintar, Nico; Scherngell, Thomas;

Complexity and Competitiveness: Analyzing Knowledge Production's Impact on Productivity in European Metropolitan Regions

Abstract

There is considerable variation in economic development both between and within countries. The variation in productivity levels is a significant factor in this phenomenon, and is in turn linked to the advancement of technology enabled by innovation and knowledge production. The focus on knowledge that is complex is expected to yield even greater benefits in terms of productivity development than knowledge of lesser quality or complexity. Although the production of complex knowledge has been the subject of considerable academic interest in recent times, the direct effects of complex knowledge on total factor productivity (TFP) remain relatively unexplored. This paper addresses the aforementioned shortcomings by utilising patent data of 192 European metropolitan regions over the period 1996 to 2017 to proxy complex knowledge production. Furthermore, a spatial econometric modelling approach is employed to investigate the relationship between metropolitan knowledge complexity and total factor productivity growth. Our results lend support to the findings of earlier studies which have demonstrated positive effects of complex knowledge production on productivity (or indirectly GDP).

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Keywords

total factor productivity, knowledge complexity, patents

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citations
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average