Convergence, Patenting Activity and Geographic Spillovers: A Spatial Econometric Analysis for European Regions

In this paper, we investigate the impact of geographical spillovers in the patenting activity and convergence process for a sample of 131 European regions over the 1981-2001 period. Using spatial econometrics methods (Anselin, 1988, 2001), we detect spatial autocorrelation and heterogeneity in the regional distribution of patent applications to the European Patent Office. Then, we include successively these spatial effects in a convergence analysis. A first specifcation taking into account the spatial dependence reveals a global convergence process between European regions as also a positive effect of geographical spillovers on this convergence process. Secondly, the spatial heterogeneity is taking into account by a specification with two spatial regimes, a "Core-Periphery" type. Finally, ours results show that the global convergence process is hiding disparities and different convergence processes for the two regimes. Only regions that belong to the "Core" of the EU are converging.