Readers familiar with academic studies will profit from taking note of a recent paper featuring differences in total factor productivity (TFP) as determining the large and persistent differences in economic development across subnational regions in European Union countries. The paper has been published 2018 by "Regional Studies", an international academic journal covering the field of regional science.
The analysis based on an exploration of differences in output per worker across 257 European Union regions "reveals that about 75% of the differences in regional economic development can be attributed to differences in TFP. This is similar between and within countries, suggesting that the spatial diffusion of technology and efficient production practices is limited and that the limits extend beyond national borders" (p. 471). These differences are strongly related to economic geography and historical development paths which "suggests limited interregional diffusion of technology and of efficient production practices." (p. 461)
In this vein the authors stress "a strong local dimension to technology and knowledge that needs to be better understood. This has important implications for regional development policy, which should be designed primarily with the aim to support regions (1) in building their comparative advantages in terms of technology and knowledge, (2) in specializing smartly to exploit economies of scale and (3) in building on existing synergies." (p. 471)
Source: Beugelsdijk, Sjoerd; Mariko J. Klasing; Petros Milionis 2018 Regional economic development in Europe: the role of total factor productivity. Regional Studies, vol. 5, no. 4, pp. 461-476.