This paper uses regional structural indicators and firm-level data of the EIB Investment Survey to show that framework conditions and firm innovation inputs affect innovation performance and regional productivity growth.… Click to show full abstract
This paper uses regional structural indicators and firm-level data of the EIB Investment Survey to show that framework conditions and firm innovation inputs affect innovation performance and regional productivity growth. We argue that, in addition to more R&D investments and access to higher levels of human capital, improvements in the regional business environment—including the quality of institutions and infrastructure—can help firms close the gap with the technological frontier and support the economic development of European regions.
               
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