Club Convergence in R&D Expenditure across European Regions

The increasing disparities between European regions constitute a great challenge for sustainable development and require identification of the factors responsible this process. Given substantive role R&D in shaping innovativeness economic development, understanding its dynamics spatial patterns can provide new insights into regional growth prospects. Although prior studies have investigated innovation convergence, apparently none has attempted to test convergence club hypothesis expenditure scope. Therefore, present study aims fill gap. paper at examining path across identifying conditioning membership. Data were retrieved from Eurostat’s database Regional Innovation Scoreboard datasets over 2008–2018. Employing nonlinear time-varying factor model, we reveal that examined follows pattern convergence. results our research allow identify five clubs characterised by distinct expenditures. We also demonstrate emergence identified might be attributable initial differences human capital, external knowledge embedded patents technological structures as measured employment medium-high high-tech manufacturing knowledge-intensive services. These policy implications terms formulation implementation more tailored policies, based on smart specialisation strategies. presence business requires shifting EU actions towards model promoting both advantages strongest opportunities less-developed ones.