We explore the role of business services in knowledge accumulation and growth and the determinants of knowledge diffusion including the role of distance. A continuous time model is estimated on several European countries, Japan, and the US. Policy simulations illustrate the benefits for EU...

This paper explores thè mie of business services in knowledge accumulation and growth and the determinants of knowledge diffusion including the role of distance. A continuous time model is estimated on several European countries, Japan, and the US. The results of the estimation and the policy...

Economists have been devoting increasing attention to the diffusion process of knowledge in economic activities. However, the models till now developed concentrate mostly on the dynamics determined by the steady state, when dealing with the interaction among many countries. Instead, we present a...