Knowledge spillovers boost regional productivity in Europe, shaping economic growth.
The article examines how knowledge impacts regional productivity in Europe using patent data. By analyzing 203 regions over six time periods, the study finds that knowledge has a positive effect on productivity levels and spreads to nearby areas. The study uses a model that considers spatial relationships in variables and shows that a region's own knowledge stock has a significant impact on its productivity. Additionally, knowledge from other regions also influences productivity, with external effects being 50% stronger than internal effects.