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. Copyright (c) 2007 the author(s). Journal compilation (c) 2007 RSAI.

The production of scientific and technical knowledge is mostly concentrated in specific locations (high-tech clusters, innovative industry agglomerations, centres of excellence, and technologically advanced regions). Knowledge flows very easily within regions; however, scientific and technical knowledge also flow between regions. The aim of this paper was to analyse how knowledge flows between regions, and the effect of these flows on the innovative performance, measured by patent applications. We estimate a regional knowledge production function, and, using appropriate spatial econometric estimation techniques, we test the effect of both geographical and relational autocorrelation (measured by participation in EU funded research networks as part of Fifth Framework Programme). We model unobservable structure and link value of knowledge flows in these joint research networks. We find that knowledge Previous versions of this paper were presented at the 7th European Meeting on Applied Evolutionary Economics, Pisa, February 2011; Dimetic Conference on 'Regional Innovation and Growth: Theory, empirics and policy analysis', Pècs, March 2011; Eurolio Conference on the Geography of Innovation, Saint Etienne, January 2012. We thank participants for useful comments and suggestions. In depth, discussions with E. Bergman, P. Elhrost, S. Beretta, B. Dettori, K. Frenken, G. Fagiolo, E. Marrocu, S. Usai and the recommendation from three referees for a thorough revision of the paper have substantially improved its structure and the arguments. The usual caveats apply. flows within inter-regional research networks, along non-symmetrical and hierarchical structures in which the knowledge produced by network participants tends to be exploited by the network coordinator. JEL Classification

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Space Vs. Networks in the Geography of Innovation: A European Analysis SummaryIn the last fifteen years, income differences among European Member States have been strongly narrowing while the process has been matched with a widening of the interregional variance within single countries. Traditionally, regional economic disparities in Europe have been ascribed to peripherality and/or to a high level of dependence on declining sectors. Nowadays regional disparities can be no longer defined only in terms of statistical differences in the values of standard macroeconomic indicators, but also according to innovative capacities and knowledge endowment. This paper provides an original framework for the interpretation of the existing relationships between innovation process and research activity in Europe and the structural and geographical features shaping the European scientific and technological map. In order to do so, we focus on two knowledge-based relational phenomena: participation in the same research networks (funded by the EU Fifth Framework Programme) and EPO co-patent applications. Using two complementary econometric techniques we try to assess those factors that determine patenting activity, distinguishing structural features, geographical and relational spillovers. Through these variables we measure the intrinsic relational structure of knowledge flows which directly connects people, institutions and, indirectly, regions, across European countries in order to test whether hierarchical relationships based on a-spatial networks between geographically distant excellence centres prevail over diffusive patterns based on spatial contiguity.

The purpose of this study is to estimate a residential water demand function in a dynamic framework for a panel of Italian municipalities and to calculate both short-run and long-run price elasticities. The Generalized Method of Moments (GMM) provides a suitable framework for obtaining asymptotically efficient estimators in this context. Specifically, the system GMM estimator is applied, which improves the properties of the standard first-difference estimator. The most relevant result shows that persistence of habits is coupled with high long-term price elasticity which is higher, in absolute value, that the instantaneous (one-year) price elasticity. Under an economic policy perspective, the effects of policy interventions can be suitably evaluated only in the long-run.