Innovation and R&D spillover effects in Spanish regions: A spatial approach

This paper analyses the spatial patterns of innovation, its regional interdependencies and evolution, as well as its role in determining local innovation in Spanish regions. Results indicate the suitability of a trade-based regional proximity when considering spatial spillovers in innovation. In this context, not only local capacity is relevant in determining domestic innovation, but also spatial innovation spillovers, which result mainly from efforts in both higher education and public administration. Moreover, a minimum level of regional development is required to improve the effectiveness of R&D policies. Therefore, it is necessary for R&D policies to act in combination with other policies focused on the improvement of socio-economic and structural determinants of regional innovative performance.