Innovation and spatial inequality in Europe and USA

Lee, Neil ORCID: 0000-0002-4138-7163 and Rodríguez-Pose, Andrés ORCID: 0000-0002-8041-0856 (2013) Innovation and spatial inequality in Europe and USA. Journal of Economic Geography, 13 (1). pp. 1-22. ISSN 1468-2702

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Abstract

Innovation is a crucial driver of urban and regional economic success. Innovative cities and regions tend to grow faster and have higher average wages. Little research, however, has considered the potential negative consequences: as a small body of innovators gain relative to others, innovation may lead to inequality. The evidence on this point is fragmented, based on cross-sectional evidence on skill premia rather than overall levels of inequality. This article provides the first comparative evidence on the link between innovation and inequality in a continental perspective. Using micro data from population surveys for European regions and US cities, the article finds, after controlling for other potential factors, good evidence of a link between innovation and inequality in European regions, but only limited evidence of such a relationship in USA. Less-flexible labour markets and lower levels of migration seem to be at the root of the stronger association between innovation and income inequality in Europe than in USA.

Item Type:	Article
Official URL:	http://joeg.oxfordjournals.org/
Additional Information:	© 2012 The Author(s)
Divisions:	European Institute Geography & Environment Spatial Economics Research Centre
Subjects:	H Social Sciences > HN Social history and conditions. Social problems. Social reform
JEL classification:	D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O31 - Innovation and Invention: Processes and Incentives R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R13 - General Equilibrium and Welfare Economic Analysis of Regional Economies
Date Deposited:	04 Feb 2013 14:34
Last Modified:	12 Dec 2024 00:20
Projects:	269869
Funders:	European Research Council under the European Union's Seventh Framework Programme (FP/2007-2013), Leverhulme Trust Major Research Fellowship
URI:	http://eprints.lse.ac.uk/id/eprint/48184

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