Innovation and regional economic resilience: an exploratory analysis

Abstract

The varying rates of recovery of European regional economies from the 2007 to 2008 economic crisis have raised interesting questions about the sources of economic resilience. Policy discourse has increasingly asserted the role played by innovation in facilitating rapid recovery from economic shocks, whilst evolutionary thinking has highlighted the specific importance of innovation capacity. However, empirical evidence on this is lacking. This paper addresses this gap by providing new empirical analysis of the relationship between regional innovation capacity and the resilience of European regions to the crisis. It finds that regions identified as Innovation Leaders at the time of the crisis were significantly more likely to have either resisted the crisis or recovered quickly from it (i.e. within 3 years). This provides important insights for evolutionary approaches theorising the relationship between innovation and resilience.