Proximity and the Use of Public Science by Innovate European Firms

We use the results of a 1993 survey of EuropeÕs largest firms to explore the effect of proximity on knowledge flows from suppliers, customers, joint ventures, competitors and public research organisations to innovative firms. The focus is on the latter, since they are an essential component of National Innovation Systems. The importance of proximity for sourcing knowledge from public research increases with the quality and output of domestic public research organisations and declines with activity in the North American market, an increase in the firmÕs R&D expenditures, and the importance of codified knowledge to the firm.