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CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology KTH/CESIS Working Paper Series in Economics and Institutions of Innovation

No 260:
Innovation, Metropolitan and Productivity

Hans Lööf and Börje Johansson

Abstract: This paper assesses the contribution to productivity of firms’ internal innovation efforts and spatially-specific factors. A dynamic GMM-estimator is applied to a panel of close to 3,000 firms located in 81 Swedish regions and observed over a 10-year period. The magnitude of benefits from the knowledge milieu of an agglomeration is sizeable, but varies between firms depending on their particular R&D-strategy and location within a metropolitan region.

Keywords: R&D; innovation-strategy; productivity; metropolitan; externalities; (follow links to similar papers)

JEL-Codes: C23; O31; O32; (follow links to similar papers)

35 pages, October 27, 2011

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