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OUR ECONOMY

Regional Differences in the Conditions of Technological Progress in Europe

Julianna Csugány, Tamás Tánczos

Abstract


The spatial structure of the world is unequal, centres and peripheries alternate.
There are significant social and development differences between countries in
the world, but there is also an unequal development within the countries. The
main purpose of the regional policy is to reduce spatial inequalities by catching
up the underdeveloped areas. Nowadays, in the era of the Fourth Industrial
Revolution, technological progress creates possibilities for developing regions to
catch up, because new technologies require new skills that are less dependent
on factor endowments of countries. Most economies are unable to create new
technologies because they do not have the appropriate resources or their
institutional environment does not favour innovation. However, technological
progress can also be observed in these countries by adopting and applying new
technologies effectively. This research aims to illustrate the regional differences in
the conditions of technological progress in Europe, using multivariate statistical
methods. Based on the European Regional Competitiveness Index, the research
question to be analysed is whether new technologies may be able to decrease
spatial differences. We compare the European regions in the field of innovation
in order to highlight the critical areas that can promote or prevent the reduction
of inequalities.


Keywords


regional differences in Europe, technological progress, innovation leaders, innovation followers

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