Knowledge Spillovers and Regional Innovation Dynamics
Summary
Knowledge spillovers arise when the generation of new knowledge by one actor benefits others without the originator’s direct authorisation or compensation. This process underpins regional innovation dynamics by linking firms, universities and public research organisations within and across geographical boundaries. The extent and nature of spillovers depend on factors such as proximity, industrial clustering, the absorptive capacity of recipient entities and the balance between tacit and codified knowledge. Horizontal spillovers transmit know-how among firms in the same sector, while vertical spillovers flow between upstream suppliers and downstream users across industries. Regions exhibiting dense networks of firms and research institutions often exhibit stronger innovation performance owing to agglomeration effects that facilitate frequent interactions and knowledge exchange. In recent years, digital communication and global value chains have reshaped traditional spatial patterns, enabling knowledge to circulate more rapidly yet also emphasising the continued importance of localised networks. Policymakers seek to harness spillover mechanisms through targeted support for public R&D, cluster initiatives and mobility programmes, aiming to enhance regional competitiveness, sustainable growth and technological resilience in a global economy.
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Knowledge Spillovers and Regional Innovation Dynamics publication trend
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Technical terms
Knowledge spillover: The unintentional diffusion of knowledge from one actor to another, enhancing innovation without direct transaction.
Horizontal spillover: Knowledge transfer among firms operating within the same industry or sector.
Vertical spillover: Knowledge flow along supply chains, from upstream suppliers to downstream users across different industries.
Industrial clustering: The geographic concentration of related firms and institutions that fosters frequent interactions and shared resources.
Tacit knowledge: Know-how embedded in individuals, difficult to codify, often transmitted through face-to-face interaction.
References
- Assessing innovation spillovers from publicly funded R&D and innovation support: Evidence from the UK. Technovation (2023).
- Connected knowledge spillovers, technological cluster innovation and efficient industrial structure. Journal of Innovation & Knowledge (2022).
- Inventor migration and knowledge flows: A two-way communication channel?. Research Policy (2020).
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