Internal and External Sources of Regional Growth

This paper examines the pattern of regional growth due to their ability to adopt technology. Whether regions exhibit a ‘high’ or ‘low’ path of growth depends on the adoption of technological improvements. Technology adoption can be either ‘internal’ or ‘external’ to the region. This approach is tested empirically using data for 247 European regions. The results suggest that adoption of technology has a significant and positive effect in regional growth in Europe.