New knowledge generated by an economic agent in a region will tend over time to flow to other economic agents in the same region but also to economic agents in other regions. It is quite common in the literature to use the concept of knowledge spillovers for such knowledge flows, irrespective of...

Using data for the European regions at NUTS-2 level, we test the predictions of a microfounded Schumpeterian growth model with technological interdependence recently developed by Ertur and Koch (2011, EK11). Spatial interdependence is identified by means ofa semiparametric geoadditive spatial...