R&D networks and regional knowledge production in Europe. Evidence from a space-time model

This study focuses on regional knowledge production in Europe, shifting attention to the role of the embeddedness of regions in inter-regional R&D networks. In these networks, nodes represent regions that are inter-linked by Joint R&D endeavours funded by the European Framework Programmes (FPs). By the notion of embeddedness we refer the structural positioning of regions in Networks from a network analytic perspective. The objective is to estimate space-time impacts of regional embeddedness in R&D networks on regional knowledge production by means of a dynamic spatial panel data model with non-linear effects. Regional knowledge production - proxied by regional patenting - is observed for a set of 229 European NUTS 2 regions for the years 1999-2009. The results Show that i) embeddedness in EU funded R&D networks has high direct and indirect impacts on regional knowledge production, and ii) additional R&D Network linkages increase knowledge production activity more likely in regions that have lower own region knowledge endowments. Our results further suggest that iii) short-term increases in R&D network centrality may not provide enough stimuli to enhance regional knowledge production in a sustainable way, as long-term Impacts are comparatively small.