Research and development intensive clusters and regional competitiveness

Modern cluster theory provides reasons for positive external effects that accrue from the interaction of spatially proximate firms operating in common and related fields economic activity. In this paper, we examine impact R&D-intensive clusters as a key factor regional competitiveness on productivity growth. relying hybrid approach identification, specialization diversity panel German NUTS-3 regions 2003–2019. After controlling characteristics unobserved heterogeneity, robust strength effect (i.e., specialization) growth is found within context conditional convergence across regions. With regard to underlying mechanisms, find presence multiple specific technological most strongly linked higher levels We also advantages are strongest industrial sector such automobile production, machinery, chemical pharmaceutical products. Overall, our estimates particularly highlight working Marshallian externalities dynamics, while Jacobs-type spillovers tend be partially realized. These findings indicate some but not all cluster-based development strategies promising policy tools foster processes.