Abstract

GERMAN-SOTO, Vicente; SOTO RUBIO, Mauro  and  GUTIERREZ FLORES, Luis. Innovation and regional economic growth: evidence from Mexico. Prob. Des [online]. 2021, vol.52, n.205, pp.145-172.  Epub Aug 23, 2021. ISSN 0301-7036.  https://doi.org/10.22201/iiec.20078951e.2021.205.69710.

This article explores the hypothesis that innovation is an important driver of growth, using an interregional dynamic panel model that controls for endogeneity and captures cumulative effects. In Mexico, the evidence based on regional criteria (geography, income, and innovation stimulus intensity) suggests that innovation has positive effects on growth, as has been theoretically hypothesized, but with gradual reductions from 2008 and significant variations by region and sector. Furthermore, public support for innovation produced different effects between areas with varying degrees of economic development, with greater elasticity in less-economically developed areas. This reality could facilitate the reduction of regional inequalities. Support for innovation should prioritize intensive high-tech projects, include more diverse economic agents, and have a regional perspective.

Keywords : Mexico; innovation; economic growth; economic regions; sectors; dynamic panel model.

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