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Geographically and technologically mediated knowledge spillovers between European regions

Lydia Greunz

ULB Institutional Repository from ULB -- Universite Libre de Bruxelles

Abstract: This paper aims at investigating inter-regional knowledge spillovers across European sub-national regions. The basic questions that we wish to answer may be formulated in the following way: do regional geographical and technological proximities matter for the creation of new knowledge within the European regional landscape? After a review of the related literature, we consider a regional knowledge production function that allows for extra regional innovation-generating inputs. Accounting for regional specific "social capability", this knowledge production function is applied to an extended sample of 153 European sub-national regions over the period 1989-1996. Interregional knowledge spillovers are shown to exist between geographically close regions and between regions displaying similar technological profiles. However, technological proximity and geographical proximity coincides to a certain extent. Knowledge spillovers are mainly driven by the private business sector. If Knowledge spillovers occur within a given country, the national border turns out to seriously hamper interregional spillovers on the European scale.

Date: 2003
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Published in: The Annals of Regional Science (2003) v.37 n° 4,p.657-680

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