Regional Innovation Systems as a Remedy for Structurally Affected Regions—Empirical Evidence from the Czech Republic

Abstract

Structurally affected regions face a necessary economic transformation, for which the efficiency of public financial support is crucial. Regional innovation systems represent a modern approach to regional and urban development focusing on innovation and research activities. The aim of this study is to assess whether there is a difference in the effect of public R&D funding on the development of a region’s innovation environment between structurally affected and other regions. The beta convergence and the method of calculating the average efficiency of public funds were used to meet the objective of this research. The analysis was conducted on data from 2012 to 2022 in 14 regions of the Czech Republic. The results show that public support for R&D has a positive effect on development of the innovation environment in structurally affected regions in the Czech Republic and that there is a difference in the effect of this support regarding structurally affected regions versus developed regions. These affected regions on average respond better to public financial support for R&D than mature regions. In contrast, the efficiency of public financial support is lower in regions with a strongly developed innovation system.