How 'Provincial' Is Your Region? Openness and Regional Performance in Europe

Gambardella A., Mariani M. and Torrisi S. How 'provincial' is your region? Openness and regional performance in Europe, Regional Studies. By employing 1995-2000 data on European regions, an index of regional openness is constructed based on the share of hotels in the population and the share of the population that speaks a second language. This index has an impact on regional performance after controlling for technological capabilities, agglomeration economies, and other factors. Apart from a direct effect of openness, an indirect effect was found coming through patents. This suggests that open regions tap into wider knowledge networks that then affect performance. From a policy perspective, making a region less 'provincial' can be as important as investments in local infrastructures and networks.