Innovation and regional economic growth: evidence from Mexico

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 three regional criteria (geography, income, and innovation stimulus intens...

Full description

Bibliographic Details
Authors: German-Soto, Vicente, Soto Rubio, Mauro, Gutiérrez Flores, Luis
Format: article
Status:Published version
Publication Date:2021
Country:México
Institution:UNIVERSIDAD NACIONAL AUTÓNOMA DE MÉXICO
Repository:Problemas del Desarrollo. Revista Latinoamericana de Economía
Language:Spanish
English
OAI Identifier:oai:ojs.pkp.sfu.ca:article/69710
Online Access:https://www.probdes.iiec.unam.mx/index.php/pde/article/view/69710
Access Level:Open access
Keyword:Mexico
innovation
economic growth
economic regions
México
innovación
crecimiento económico
regiones económicas
Description
Summary: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 three 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.