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This paper reports the findings of a survey of innovative firms in the South East of England undertaken during 1999/2000. It is argued that in order to explain the observed concentration of innovation in a limited number of cities both in the US and in Europe it is necessary to consider both local knowledge spillovers and international knowledge transfers. Knowledge and experience are argued to be important in overcoming the uncertainties that characterise the innovation process. The survey reported here shows that two main categories of knowledge are important for SMEs. These are first mainly supply-side local knowledge spillovers from suppliers, collaborators and HEIs. Secondly, they are often demand-side national and international knowledge transfers from clients, customers and their international distributors. Cities rich in both local capacity and international connections are usually the locations for high levels of innovation among the firms based in them.

European integration has traditionally been aimed at the reduction of barriers to intra European trade and factor mobility. This has been achieved by the abolition of tariffs and import duties, by liberalisation of capital movements and reduced barriers to foreign direct investments, by legislation facilitating mobility of people across the European Union, and by the abolition of various so-called non-tariff barriers to trade under the 1992 programme.

One of the most striking paradoxes of our time has been the growing importance of regions in the face of a globalizing economy. This insightful book explains the dynamics of regions in a global economy and sheds light on the role of knowledge in driving regional growth. The author examines the way in which regions grow by receiving knowledge from surrounding regions. Using evolutionary theory, she advances the argument that knowledge spillovers operate locally. Computer-simulations analyse the impact of knowledge spillovers on economic growth across European regions. Finally, the author uses new original data on, among others, patents and research and development to demonstrate differences in economic and innovative activity across regions

We create unique patent-based measures of Marshall–Arrow–Romer (MAR) and Jacobs knowledge spillovers using patent citations data and use them to test the Glaeser et al. model of local industry employment growth on three emerging technology categories, namely, computing and communications, drugs and medical, and electrics and electronics. We test growth in 45 U.S. metropolitan statistical areas (MSAs) and consolidated metropolitan statistical areas (CMSAs) for eight two-digit industries over the period 1994 to 2000. We find strong evidence for MAR spillovers from specialization, but little for Jacobs spillovers from diversity. Our results suggest that regional specialization, but not diversity, boosts local industry employment growth in these knowledge fields. JEL classifications: J21, L16

PurposeThe purpose of this paper is aimed at analysing the influence of the host government policies on foreign direct investment (FDI) knowledge spillovers.Design/methodology/approachStarting from the analysis of the literature, the paper has introduced a theoretical model that has been illustrated analyzing the Iranian case.FindingsGovernments can promote the realisation of knowledge spillovers only if they create the conditions for improving the absorptive capacity of local firms and the connections between local firms and foreign investors (strategic approach). Moreover, in many emerging countries, governments are directly involved in relationships with foreign investors through state‐owned companies. According to this, the Iranian case shows how the direct government involvement, if it is matched with a strategic approach, can encourage the realization of FDI knowledge spillovers.Research limitations/implicationsThe paper presents some limitations: other quadrants of the proposed model need to be further explored adopting other case studies; moreover, the Iranian case can be examined more in deep.Practical implicationsFrom a policymaker's point of view, the paper is an useful tool because it gives them many suggestions about what FDIs attraction policies have to be adopted in order to realize FDI knowledge spillovers.Originality/valueFrom a theoretical point of view, the paper gives a contribution to the literature on FDI spillovers highlighting the direct relationships between host government policies and FDI knowledge spillovers, especially revaluing the opportunities stemming from a direct government intervention. Moreover, this paper contributes to increase the knowledge on the Iranian context often neglected by international management studies.