The Diversity of Innovation in the European Union: Mapping Latent Dimensions and Regional Profiles

Abstract

Regional innovation systems are a relevant approach when analysing territories from either a theoretical or an operational point of view. In the last few years, the development of several different comparisons of innovative profiles of sub-national level demonstrates the interest in this paradigm. The article proposes, through an analysis of 175 regions, a typology of regional innovative profiles to understand the diversity of innovation in the European Union. Multivariate statistics were used to find the dimensions underlying the innovation phenomena and to create homogenous groups of regions that display similar profiles. First, Factorial Analysis was used to reduce regional indicators to their latent dimensions (Technological Innovation, Human Capital, Economic Structure and Labour Market Availability). Second, a hierarchical analysis of clusters was undertaken, resulting in five groupings of regions (Disadvantaged Regions, Average Regions, Central Regions, Large Economic Centres and Innovating Regions). The results of the study are compared with other relevant analyses and some consensual ideas are achieved. Physical proximity still has a relevant impact on innovation processes. The planning and policy-making of innovation must take into account this profile diversity and should originate actions adapted to each specific context. With a political agenda such as Lisbon's, which intends to create a competitive territory, the focus on an indicator such as gross domestic product is extremely inadequate for fundamental decisions related to financing regional policy. More meaningful analysis like the one carried out in the article could be an example to evaluate future regional budgets in terms of European regional policy.