Assessing innovation spillovers from the public science system

ERC Insight Paper

Associated Themes
  • Innovation

Knowledge – embodied, explicit, and tacit – drives innovation. Research and development and other knowledge creation activities play a key role, as does the type of external knowledge sourcing central to models of open innovation. As knowledge is a semi-public or public good, however, firms may also obtain knowledge unintentionally through spillovers. Using matched data from Gateway to Research, the UK Innovation Survey and the Business Structures Database, we estimate the innovation spillovers from the UK public science system on other non-participating firms. Our findings emphasise the importance of localised horizontal (intra-industry) spillovers in fostering the adoption of process and product innovations, while localised vertical (inter-industry) spillovers have their strongest effects on the development of new patents.