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We study the impact of industrial specialization and diversification on regional R&D performance. We respond to a need to consider specialization and diversification as being complementary and to cover a broad geographical scope. Based on Malmquist-based data envelopment analysis, we disclose disparity in R&D productivity and underlying efficiency and technical change in regions in China, Europe, and in the USA in the period 2015–19. For provinces in China, industrial diversification affects regional R&D productivity growth and efficiency enhancement in a U-shape mode. For European countries, specialization has a U-shaped influence on R&D productivity change, and diversification has an inverted U-shaped influence on productivity and efficiency change. We find no significant influence of specialization and diversification on the improvement of R&D performance at the level of states in the USA. Our findings point to place-based specificities and complementarity between specialization and diversification and come with policy recommendations for enhancing regional R&D performance.
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You et al. (2024) studied this question.
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