Spatial econometrics has been criticized by some economists because some model specifications have been driven by data-analytic considerations rather than having a firm foundation in economic theory. In particular, this applies to the so-called W matrix, which is integral to the structure of...

The regional-growth literature emphasises the importance of positive network externalities as determinants of the long-run competitiveness of region, highlighting their role in reducing spatial transaction costs and facilitating collective learning and innovation. In this paper we contribute to...

One of the key issues surrounding geographical economics is whether the theory can be made operational, so that proper investigations can be made of the basic theoretical assumptions and practical use can be made of the model's predictions at a detailed spatial level. In this paper the model...

This paper provides new evidence that, controlling for other effects, the growth of employment in high-technology SMEs depends on the initial horizontal clustering. The paper focuses on employment change over the period 1991-2000 in computing services and research and development (R&D)...

Neoclassical theory assumes diminishing returns to capital and spatially constant exogenously-determined technological progress, although it is questionable whether these are realistic assumptions for modeling manufacturing productivity growth variations across European Union (E.U.) regions. In...

In recent years we have seen major advances in economic geography theory, but only limited empirical analysis. This paper focuses on a spatial econometric modelling approach, informed by recent theoretical advances, to simulate possible economic geographies of the European Union. In the paper I...

This paper tests two major competing theories explaining the spatial concentration of economic activity, namely new economic geography theory (NEG) which emphasizes varying market potential, and urban economics theory (UE) in which the main emphasis is on producer service linkages. Using wage...

This paper uses data for 255 NUTS-2 European regions over the period 1995-2003 to test the relative explanatory performance of two important rival theories seeking to explain variations in the level of economic development across regions, namely the neoclassical model originating from the work...

The definition of creative industries has been outlined by Britain's Creative Task Force as “those activities which have their origin in individual creativity, skill and talent, and which have the potential for wealth and job creation through the generation and exploitation of intellectual...

The papers appearing in this special issue of Papers in Regional Science, which is devoted to spatial econometrics, come from the First International Conference of the Spatial Econometrics Association held in Cambridge (UK) 12-14 July 2008. This conference was the first official meeting of the...