Space versus networks in the geography of innovation: A European analysis

This paper provides an original framework for the interpretation of innovative activity among European regions according to traditional 'geographical' spillovers and 'relational' spillovers. The focus is on two knowledge-based relational phenomena: participation in the same research networks (within the EU Fifth Framework Programme) and EPO co-patent applications. Using two econometric techniques, we investigate the factors that determine patenting activity, distinguishing structural features, geographical and relational spillovers. In this way, we are able to test whether hierarchical relationships based on a-spatial networks between geographically distant excellence centres prevail over diffusive patterns based on spatial contiguity.