European regions benefit from spatial knowledge spillovers, boosting local innovation.
Knowledge spillovers in Europe have been studied to see how they affect local patent production. When R&D spending in a region goes up by 1%, the number of patents also increases by 0.482% on average. Spillovers from nearby regions have a positive impact on local knowledge production, especially when considering the distance between regions. Public R&D spending has less of an impact on patents compared to private R&D spending.