Applied Evolutionary Economics and Economic Geography
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Applied Evolutionary Economics and Economic Geography

Edited by Koen Frenken

Applied Evolutionary Economics and Economic Geography aims to further advance empirical methodologies in evolutionary economics, with a special emphasis on geography and firm location. It does so by bringing together a select group of leading scholars including economists, geographers and sociologists, all of whom share an interest in explaining the uneven distribution of economic activities in space and the historical processes that have produced these patterns.
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Chapter 11: Inter-regional Knowledge Flows in Europe: An Econometric Analysis

Mario A. Maggioni and T. Erika Uberti

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11. Inter-regional knowledge flows in Europe: an econometric analysis Mario A. Maggioni and T. Erika Uberti* 1. INTRODUCTION The aim of this chapter is to analyse the impact of knowledge on regional economic development and, consequently, on regional disparities across five major European countries: France, Germany, Italy, Spain and the United Kingdom. In particular our focus is on the nature of knowledge, not only as a fixed cost in the production process (leading to scale economies), an investment good (influenced by accumulation and depreciation dynamics) and an experience good (whose quality attributes can be detected only upon using, or consuming, the good), but also as a ‘relational’ good displaying network externalities. In this chapter we analyse the manifold nature of knowledge through the analysis of four distinct but complementary phenomena (Internet hyperlinks, European research networks, European Patent Office (EPO) co-patent applications, Erasmus student mobility) which characterise knowledge as an intrinsic relational structure (directly) connecting people, institutions and (indirectly) regions across five European countries. Two main research questions are addressed: the first deals with the notion of regional disparities; the second refers to the different concepts of distance, namely geographical, functional and sectoral. Regional disparities can no longer be defined only in terms of statistical differences in the values of standard macroeconomic indicators. Knowledge matters more and more in defining both the level and the growth rate of a given region GDP (Sapir et al., 2004). For this reason, new relational indicators have to be...

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