Scandinavian Working Papers in Economics

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

No 260: Innovation, Metropolitan and Productivity

Hans Lööf and Börje Johansson
Additional contact information
Hans Lööf: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden
Börje Johansson: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden

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

JEL-codes: C23; O31; O32

35 pages, October 27, 2011

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