A concept for measuring network proximity of regions in R&D networks

This paper proposes a new measure for assessing the network proximity between aggregated units, based on disaggregated information on the network distance of actors. Specific focus is on R&D network structures between regions. We introduce a weighted version of the proximity measure, related to the idea that direct and indirect linkages carry different types of knowledge. First-order proximity arising from direct cross-regional linkages is distinguished from higher-order network proximity, resulting from indirect linkages in the R&D network. We use an macroeconomic application in which we analyse the productivity effects of R&D network spillovers across regions to illustrate the usefulness of a proximity measure for aggregated units.