Technological knowledge spaces and the resilience of European regions

Abstract

Regional knowledge spaces are heterogeneous, and the structure of these knowledge spaces can play a significant role in shaping regional economic performances during economic downturns. This article explores the relationship between a region's technological profile and its resilience to exogenous shocks. To identify the determinants of regional economic resilience, we perform panel analyses of EU 15 NUTS II level data covering the years before and after the 2008 financial crisis. The most significant results are that, beyond pure diversification effects, regions endowed with technologically coherent capabilities adapted better in times of economic downturn, and that resilience is influenced by a region's capacity to generate new growth paths. These findings deepen our understanding of the evolution of regional economies and have relevant implications for the design of appropriate regional development policy instruments.