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Knowledge Spillovers and Employment Growth in Great Britain

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  • André van Stel
  • Martijn de Jong
  • Nina Hodzic

Abstract

The importance of knowledge spillovers for achieving innovation and economic growth is widely recognised. It is not straightforward which type of spillovers is most effective: intra-sectoral spillovers or inter-sectoral spillovers. We investigated this controversy using a model of regional growth. The model also deals with the impact of local competition on innovation and growth. The model is estimated using sectoral data for 60 British regions. A positive effect of local competition on economic growth is found for several sectors of the economy, while a positive effect of diversity (a proxy for inter-sectoral spillovers) is found only for the production sector. We found no effect for specialisation (a proxy for intra-sectoral spillovers).

Suggested Citation

  • André van Stel & Martijn de Jong & Nina Hodzic, 2002. "Knowledge Spillovers and Employment Growth in Great Britain," Scales Research Reports N200206, EIM Business and Policy Research.
    • Handle: RePEc:eim:papers:n200206
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