Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/326779 
Year of Publication: 
2021
Series/Report no.: 
UNU-MERIT Working Papers No. 2021-020
Publisher: 
United Nations University (UNU), Maastricht Economic and Social Research Institute on Innovation and Technology (UNU-MERIT), Maastricht
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.
Subjects: 
Innovation theories
National Innovation System
Exploratory Factor Analysis
European cohesion policy
JEL: 
O30
O52
C38
Creative Commons License: 
cc-by-nc-sa Logo
Document Type: 
Working Paper

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