Regional Convergence – Regional Science Inquiry

Stilianos ALEXIADIS *

Ministry of Rural Development & Foods, Department of Agricultural Policy & Documentation, Division of Agricultural Statistics, Room 519, 2 Acharnon Street, 104 32, Athens, Greece, Tel: ++30 210 2125925

salexiadis7@aim.com

Abstract

One of the most controversial issues in regional science is regional convergence. Do regions converge? Why the existing inequalities across regions persist overtime, despite some movements towards convergence. Such questions had bred an extensive literature. In this paper, a model of regional convergence focusing on technological factors is developed. This model is tested using data for the EU-27 regions. A possible explanation for these results is offered and suggests that might afford an interesting policy conclusion.

Keywords: Regional convergence, Technological gaps, Technology adoption

JEL classification: R10

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* The findings, interpretations and conclusions are entirely those of the author and, do not necessarily represent the official position, policies or views of the Ministry of Rural Development & Foods and/or the Greek Government.

George M. Korres

Visiting Fellow, University of Newcastle, Centre of Urban and Regional Development Studies, CURDS, Newcastle, United Kingdom, George.Korres@ncl.ac.uk and Associate Professor at the University of Aegean, Department of Geography, Email: gkorres@hol.gr and gkorres@geo.aegean.gr

and

Aikaterini Kokkinou

Department of Economics, University of Glasgow, Adam Smith Building, G12 8RT, Glasgow, United Kingdom, E-mail: a.kokkinou.1@research.gla.ac.uk

Abstract:

Globalization and competition has shifted the comparative advantage of economies towards the factor of knowledge and innovation, where productivity based on the endogenous development capabilities plays a rather important role, as far as growth and competitiveness enhancement are concerned. In order to promote innovation activities and technological opportunities, productivity enhancement seems to have significant effects on the long run performance of the economy. Within this framework, the enhancement and convergence of growth and productivity are a major topic in the economic and social policy agenda of E.U. members, since governments seek to concentrate on problems not only related to low employment growth, high unemployment, fiscal deficits and public debt, but also to national disparities and convergence attainment. This paper aims to review the main topics related to innovation activities, as well as competitiveness and economic convergence attainment. It also attempts to analyze, using a benchmarking approach, the effects of innovation activities, in order to clarify the related implications on regional convergence process.