To what extent can the innovation drivers of regional competitiveness explain the GDP difference between the North and the South of Italy?

Abstract

Competitiveness is a multi-level concept widely discussed by academics and politicians. Its importance partly derives from the fact that competitiveness is seen as a means “for achieving and sustaining economic growth, contended living standard and well-being of people” (Borozan, 2008). In examining the EU Regional Competitiveness Index (RCI) Report, it is apparent that there may be strong differences among regions within the same country. Italy is an example of such a case. the aim of this paper is to investigate to what extent the innovation drivers of regional competitiveness can explain the GDP difference between the North and South of Italy. While GVA is a big contributor to the GDP per capita of the southern regions, there are two other independent variables that have an even bigger influence on the GDP per capita in the South: core creative class employment and high-tech patents.