A renewed interest has been growing recently for the spatial dimension of trade and knowledge flows. Several contributions have shown that knowledge proximity matters in mediating flows of knowledge and that knowledge spillovers tend to occur within limited geographical boundaries. Theoretical works have also shown that geographical concentration of knowledge spillovers may play a fundamental r...

Employing a quantile regression estimator, the study presents new evidence on role of human capital in exploiting technology effects from foreign direct investment (FDI) low-technology industries. A model to capture non-linearity FDI according employees’ educational qualifications was developed. This examined whether workers’ absorptive capacity had different spillover at points conditional dis...

This paper discusses the position of the European Union in the world economy by focussing on innovation, knowledge creation and technology policy. First, we explore and analyse the concept of knowledge and its application in a modern Schumpeterian framework. Second, we address some new insights in the diffusion and other properties of knowledge. Third, we focus on knowledge spillovers by invest...

The use of FDI as a channel of international spillovers is by now fairly established in the empirical literature on innovation and growth. It is often argued that subsidiaries of foreign MNEs are a mechanism through which technological know-how flows across borders. For foreign subsidiaries to be channels of international spillovers, these subsidiaries need to source know-how internationally an...

Inspired by the theory of variety-expanding product innovation we derive a testable relationship of outsourcing on the growth rate of knowledge. We estimate this relationship with a firm-level dataset, which is a unique match of PATSTAT patent data and the Amadeus dataset. We find evidence that forward spillovers are stronger than backward spillovers, where forward spillovers are defined as spi...

Most explanations of economic growth are based on knowledge spillovers, where the development some technologies facilitates enhancement others. Empirical studies show that these spillovers can have a heterogeneous and rather complex structure. But, so far, little attention has been paid to consequences different structures such cross-technology interactions: Is more easily fostered by homogenou...