Template-type: ReDIF-Paper 1.0
Author-Name: Wirkierman, Ariel L.
Author-Email: a.wirkierman@gold.ac.uk
Author-Workplace-Name: Institute of Management Studies(IMS), Goldsmiths,
	 University of London
Author-Name: Ciarli, Tommaso
Author-Email: ciarli@merit.unu.edu
Author-Workplace-Name: UNU-MERIT, and Science Policy Research Unit (SPRU),
	 University of Sussex
Author-Name: Savonna, Maria
Author-Email: M.Savona@sussex.ac.uk
Author-Workplace-Name: Science Policy Research Unit (SPRU), University of Sussex,
	 and Department of Economics and Finance, Luiss University
Title: A taxonomy of European innovation clubs
Abstract: The paper provides a novel, empirically grounded map of innovation
	 'clubs' in the EU, based on a unique analysis of micro-aggregated,
	 country-level data. Using exploratory factor analysis we articulate
	 innovation variables in a taxonomy of four 'latent' innovation theories:
	 Network-Innovation-System, Kaldorian, New-Growth-Theory, and
	 Schumpeterian. We then characterise clusters of countries ('clubs'),
	 based on their performance against this taxonomy, and design a new map
	 of EU innovation clubs. We identify an articulated map of EU innovation
	 hierarchy beyond the rather well-known 'core-periphery' structure, and
	 interpret how some of the peripheries are functional to the
	 'consolidated core' of innovative countries, raising an issue of
	 long-term sustainability of such hierarchies. We also find that even the
	 most innovative clusters show concerning weaknesses. The strongest
	 cluster in terms of its innovation system does not seem to exploit its
	 full potential and lags behind with respect to radical product
	 innovations. Instead, the leading cluster in terms of radical product
	 innovations is strongly dependent on external innovative activity, is
	 focused on scale-intensive sectors, and has a fairly weak innovation
	 system. The periphery of small countries that show a healthy network
	 structure, do so because they mainly include supplier-dominated firms,
	 reliant on innovation inputs from the core. We offer some reactions on
	 innovation policy within a broader view of EU cohesion.
Classification-JEL: O30, O52, C38
Keywords: Innovation theories, National Innovation System, Exploratory Factor
	 Analysis, European cohesion policy 
Series: UNU-MERIT Working Papers
Creation-Date: 20210511
Number: 2021-020
File-URL: https://unu-merit.nl/publications/wppdf/2021/wp2021-020.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2021020