The long-run relationship between R&D and regional knowledge: the case of France, Germany, Italy and Spain

Marcos Sanso-Navarro and María Vera-Cabello

Regional Studies, 2018, vol. 52, issue 5, 619-631

Abstract: The long-run relationship between R&D and regional knowledge: the case of France, Germany, Italy and Spain. Regional Studies. This paper incorporates time dependence into a regional knowledge-production function framework. Within this setup, the long-run dynamic behaviour of research and development (R&D) and knowledge is analysed in four European countries – France, Germany, Italy and Spain – using unit-root tests and co-integration techniques. We find that the regional stock of knowledge is co-integrated with R&D employment and external knowledge. Nonetheless, knowledge spillovers play a more important role in the generation and accumulation of new ideas. This suggests that innovation policies should aim at enhancing knowledge diffusion and regional absorptive capacity.

Date: 2018
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DOI: 10.1080/00343404.2017.1360476

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