Regional economy Essay Example | Topics and Well Written Essays - 1000 words

Regional economy - Essay Example Regarding political context, consolidated investments in Research and development activities are particularly promoted to be enhanced, especially in business sector. Correlation analysis of the European Union Research and development policy, higher education activities, innovative business participation and regional economic growth justifies the European Union Research and development policy and financial mechanisms applied in the European Union regions, where coherence is stimulated. According to the conducted research it can be stated that in these regions expenditure of business sector on Research and development activities increases the GDP per capita in PPS, the labour productivity per hour worked, but governmental sector expenditure on Research and development activities has a small negative influence on the GDP per capita in PPS. Higher education sector expenditure on Research and development activities in these regions induces the increase of the number of students, but no in fluence on economic indicators is noticed. However, the correlation analysis shows the differences exist regarding the influence on regional economic development between the different regions of the European Union, the USA and Japan. Some premises could be made, which may create difficulties in the European Union regions, where cohesion is stimulated, to implement some financial and management mechanisms, aimed to stimulate Research and development activities, and that are used in the European Union regions, where cohesion is not stimulated, in the USA and in Japan. Paragraph Sources:- i. European Communities (2006). Creating Innovative Europe. Report of the independent expert group on R&D and innovation appointed following the Hampton Court Summit and chaired by Mr. Esko Aho Luxembourg: Office for Official Publications of the European Communities ii. Eurostat (2009). Accessed on 2009-01-10 by http://epp.eurostat.ec.europa.eu/portal iii. Melnikas, B.; Dzemydiene, D. Evaluation of Re gional Economic Clusters In Central And Eastern Europe. Intellectual Economics. 2007, 1: 46–54. 2. How has regional policy within the union developed in an attempt to promote cohesion and balanced geographical growth Substantial progress has been made in understanding the sources of uneven economic Development at the regional, national and international scales, but no single theory or Disciplinary perspective is up to the task of such understanding. This literature review Suggests that traditional theories of economic growth have been complemented by three Principal advances in theory and measurement: economic geography, and especially Theories of the relationship between transport/trade costs and spatial agglomeration; Economic growth theories and especially those that focus on the sources of innovation And knowledge-creation in the economy, and on their territorial distribution; and Institutional theories, which centre on the capacities of economies to absorb knowledge And innovate, to organize them efficiently, to adapt to change, and to avoid lock-in By inefficient practices or rent-seeking interest groups. Taken together, they go a long Way toward