TERRITORIAL CAPITAL AND REGIONAL GROWTH: INCREASING RETURNS IN KNOWLEDGE USE

• Published in: Tijdschrift voor economische en sociale geografie Vol. 102; no. 4; pp. 385 - 405
• Main Authors: CAPELLO, ROBERTA, CARAGLIU, ANDREA, NIJKAMP, PETER
• Format: Journal Article
• Language: English
• Published: Oxford, UK Blackwell Publishing Ltd 01.09.2011; Wiley-Blackwell; Koninklijk Nederlands Aardrijkskundig Genootschap
• Subjects: Bgi / Prodig; Capital; Correlation; Economic geography; Economic performance; Economics; Human geography; increasing returns; Investment returns; Investments; knowledge spillovers; Knowledge transfer; milieu innovateur; Political and economic geography; Production; Productivity; Regional development; Regional disparities; Regional economy and planning; regional growth; Research and development; spatial econometrics; Territorial capital; Territorial claims; Spatial concentration; Productivity; Regional economy; Innovation; Regional development; Firm concentration; Local amenities; Knowledge; Social capital; Research and development; Firm
• ISSN: 0040-747X; 1467-9663
• DOI: 10.1111/j.1467-9663.2010.00613.x

ABSTRACT Knowledge drives the growth of nations and regions in a competitive space‐economy. Hence, we would expect a strong correlation between investments in R&D, knowledge and learning processes, on the one hand, and productivity increases, on the other. However, the empirical evidence shows consistent discrepancies between knowledge inputs and economic performance across geographical units. This paper addresses this intriguing issue at the regional level, by highlighting theoretically and empirically the strategic importance played by intangible elements as part of “territorial capital” in mediating between knowledge production and regional growth. The main proposition of the paper, subject to empirical testing, is that intangible elements as part of territorial capital magnify the contribution of knowledge by determining the formation of increasing returns to knowledge exploitation.