Template-type: ReDIF-Paper 1.0 Author-Name: Verspagen, Bart Author-Email: b.verspagen@tm.tue.nl Author-Workplace-Name: Eindhoven University of Technology, UNU-MERIT Title: The Spatial Hierarchy of Technological Change and Economic Development in Europe Abstract: 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. Classification-JEL: O31, O18, O52, O38 Keywords: Technological Change, Economic Development, Europe, Geographical Distribution, Government Policy Series: UNU-MERIT Working Papers Creation-Date: 2007 Number: 012 File-URL: http://www.merit.unu.edu/publications/wppdf/2007/wp2007-012.pdf File-Format: application/pdf File-Size: 275 Kb Handle: RePEc:unm:unumer:2007012