RD networks and regional knowledge production in Europe: Evidence from a space-time model

In this study we estimate space-time impacts of the embeddedness in R&D networks on regional knowledge production using a dynamic spatial panel data model with non-linear effects for 229 European NUTS 2 regions in the period 1998–2010. Embeddedness refers to the positioning in networks where nodes represent regions that are linked by joint R&D projects funded by EU Framework Programmes. We find evidence that increasing embeddedness in EU funded R&D networks leads to positive immediate impacts on regional knowledge production, and that regions with lower levels of own knowledge endowments more likely exploit the positive effects. However, the long-term impacts of a region's embeddedness in these R&D networks are comparatively small.