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

In this study we estimate space‐time impacts of the embeddedness in R&D networks on regional knowledge production using a dynamic spatial panel data model with non‐linear effects for 229 European NUTS 2 regions in the period 1998–2010. Embeddedness refers to the positioning in networks where nodes represent regions that are linked by joint R&D projects funded by EU Framework Programmes. We find evidence that increasing embeddedness in EU funded R&D networks leads to positive immediate impacts on regional knowledge production, and that regions with lower levels of own knowledge endowments more likely exploit the positive effects. However, the long‐term impacts of a region's embeddedness in these R&D networks are comparatively small.