Productivity Growth, Human Capital and Technology Spillovers: Nonparametric Evidence for EU Regions

Badinger, Harald; Egger, Peter H.; v. Ehrlich, Maximilian (2019). Productivity Growth, Human Capital and Technology Spillovers: Nonparametric Evidence for EU Regions. Oxford bulletin of economics and statistics, 81(4), pp. 768-779. Wiley-Blackwell 10.1111/obes.12285

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This paper assesses the strength of productivity spillovers nonparametrically in a data set of 12 industries and 231 NUTS2 regions in 17 European Union member countries between 1992 and 2006. It devotes particular attention to measuring the catching up through spillovers depending on the technology gap of a unit to the industry leader and the local human capital endowment. We find evidence of a nonlinear relationship between the technology gap to the leader as well as human capital and growth in logs. Spillovers are smallest for units with a medium‐high technology gap to the leader, especially for regions where human capital endowments are low.

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