DO R&D SPILLOVERS MATTER IN THE EU REGIONAL CONVERGENCE PROCESS? A SPATIAL ECONOMETRIC APPROACH

This paper explores the role of spatial spillovers in the economic growth process across 245 NUTS (Nomenclature of Units for Territorial Statistics) 2 EU (European Union) regions for the 2003 - 2014 period. The main methodological basis for our analysis is spatial extension of conditional beta-convergence model. The estimation results confirmed income convergence among the EU regions and have suggested that examined R&D (research and development) indicators (patents applications and human resources in science and technology) play an important role in regional economic performance in the EU regions. Performed calculations of direct, indirect and total impacts and their spatial partitioning indicated that there is not only the link between R&D indicators and economic growth within the region but in addition, the innovation and knowledge spill over to neighbouring regions and influence the economic performance of these regions.