Firm Exits as a Determinant of New Entry: Is There Evidence of Local Creative Destruction?

Beyond the “Innovation's Black-Box”: Translating R&D outlays into employment and economic growth

“…In this sense, the results are congruent with previous findings of Refs. [2,78,111,121,126,141]; suggesting that Market Potential has a double-role 8 :…”

“…Thus, knowledge contexts can be a source of regional competitive advantage (e.g., Refs. [39,65,69,121,140]). …”

“…The second reason concerns the increasing pace of innovation associated with the shortening of technology and product life-cycles [4e6, 24,52,69,91]. This development appears to favour new entrants, in particular, the industry spin-offs and knowledge-based start-ups that have greater flexibility than established corporations in coping with decreasing time-to-market and other disruptive changes [30,92,121,152]. Thus, it is especially important to find out what components of an R&D system are most decisive as engines of economic growth [18,55,78] and what are the key factors determining systems' innovative capacity [10,15,16].…”

“…This has given rise to a series of important studies, both theoretical and empirical (e.g., Refs. [12,20,22,24,35,55,75,78,89,99,121,128]) though, to date, "the problem of studying innovation and business effectiveness at the regional level has not yet been completely resolved" [98, p. 99]. Consequently, it is these questions, concerned with the universal fostering of innovation by way of the most effective (i.e., public and private) investment, adapted to each case, to reap the most benefits, in terms of employment and economic growth, which we will attempt to answer in the present work, for the case of European regions, starting for this purpose from an approach that combines different theoretical streams.…”

“…We thus seek to fill in the gap between R&D efforts and the attainment of measurable, sustained and sustainable outcomes in terms of employment and economic growth. Based on the assumption that innovation is a 'place-based phenomenon', where specific investments pay off in the form of specific outcomes [22,97,121], this study seeks to address the following research questions: (a) Is it possible to identify the composite dimensions of RIS that can be adopted and managed as independent economic policies and that are generalisable to all regions, despite the idiosyncrasies of different regions? (Hypothesis 1) (b) Is it possible to map the overall RIS architecture by identifying underlying mediating variables and by measuring their influence on the attainment of statistically significant outcomes at the macro-economic level (i.e., YouthUnemployment, Unemployment, Gross Value Added and Gross Domestic Product)?…”