How far do They Reach? The Localization of Industrial and Academic Knowledge Spillovers in the Netherlands

R&D is good for economic growth.There is now compelling evidence that R&D is in particular good for local economic growth, since knowledge spillovers tend to be bounded by distance.But how local is local?This paper studies the role of proximity in innovation in the Netherlands, a small country.We find that proximity does not promote industrial knowledge spillovers within the Netherlands, nor spillovers from all-discipline universities.But we do find that distance limits spillovers from universities of technology.