We assess the efficiency of regional innovation systems (RIS) in Germany by means of a knowledge production function … efficiency of its innovation system is inversely u-shaped. Regions dominated by large establishments tend to be less efficient …

Innovation processes are characterized by a pronounced division of labor between actors. Two types of externality may … innovation (MAR externalities). On the other hand, new ideas may be born by the exchange of heterogeneous and complementary … knowledge between actors, which belong to different industries (Jacobs' externalities). We test the impact of both MAR as well …