UNU-MERIT Working Papers

This paper discusses the possibility of a spatial hierarchy of
innovation and growth dynamics in Europe. A spatial hierarchy is
understood as a geographical clustering of regions, where important
differences exist in terms of innovation and growth dynamics between the
clusters. The literature on regional growth and innovation is briefly
scanned. After this, a database on European regional growth and
innovation dynamics is presented. Spatial correlation analysis and
spatial principal components analysis are used to explore the
possibility of a spatial hier-archy in Europe. The results point to a
hierarchy consisting of four groups: South Europe, East Europe, and two
groups in West and North Europe. Growth and innovation performance in
these clusters is discussed, and some policy conclusions are drawn.

UNU-MERIT Working Papers
ISSN 1871-9872