The article Knowledge, Innovation and Productivity Gains across European Regions,published 2015 by "Regional Studies", explores- as the title says - the relationship between knowledge, innovation and productivity. The authors strongly assume "that different modes of innovation characterize regions, according to the presence/absence of some context conditions that allow for the creation and/or adoption of knowledge and innovation."
The paper analyses how European regions with different innovation patterns achieve productivity gains and shows that in regional innovation patterns based on local scientific knowledge-creation processes there are positive returns to scientific knowledge. "However, benefits from knowledge are selective "and concentrated in a relatively small number of regions" while benefits from innovation "seem more pervasive and beneficial, even in regions with a low endowment of scientific knowledge."
The authors feel confident that their results have "considerable implications" for the EU innovation policies at regional level.
Source: Capello, Roberta; Camilla Lenzi 2015 Knowledge, Innovation and Productivity Gains across European Regions. Regional Studies, vol. 49, no. 11, pp. 1788-1804.