Spurred on by the theory of network formation, and by the geography of innovation, traditional analyses on R&D cooperation face a deep renewal. This paper assesses the extent to which these renewals find an empirical validation. Based on the research projects submitted to the 6-super-th Framework Program of the European Union, a binary choice model is used in order to highlight the existence of network and spatial effects alongside other microeconomic determinants of cooperation. Our findings suggest that network effects are present, so that probability of collaboration is influenced by each individual's position within the network. Social distance thus seems to matter more than geographical distance. Copyright (c) 2007 the author(s). Journal compilation (c) 2007 RSAI.

This paper seeks to develop our understanding of the somewhat diffuse nature of technological externalities and space by associating a geographical dimension with the sectoral dimension. Using a panel data set containing French patents as well as private and public research expenditures by industry and region over the period from 1992 to 2000, this paper estimates a knowledge production function. The region-and industry-specific nature of the sample data allows us to empirically examine spatial spillovers associated with public and private research expenditures in own-and other-industry sectors for our sample of 94 French regions. We find that the largest direct and indirect effects are associated with private R&D activity that spills across industry boundaries. However, since Jacobs externalities decrease more drastically with distance than MAR externalities, our results also point to different optimal strategies for regional versus national officials.

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The theory of endogenous growth and the geography and growth synthesis both consider that local growth and spatial concentration of economic activities emanate from localised knowledge spillovers (Lucas 1988; Martin and Ottaviano 1999). Since the end of the 1980's, the spatial dimension of knowledge diffusion has been investigated from an empirical point of view, and the existence and role of local spillovers has been generally confirmed (see among others Jaffe 1989; Audretsch and Feldman 1996). The concern that now arises is to unravel the mechanisms underlying and explaining the geographical knowledge spillovers. The aim of this special issue is to present the latest new findings on such questions and to identify some new lines of research for future work. Before presenting the content of this special issue, we very briefly review the main results of the empirical literature on the geography of innovation. We also explain the context of this special issue by pointing out some of the limitations faced by this literature and, by stressing the complex dynamic and network dimensions of the observed processes of production and diffusion of knowledge.

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