Understanding Knowledge Spillovers from R&D and Innovation – Concepts and Evidence

This report provides an overview of the mechanisms and evidence relating spillovers from publicly funded R&D and innovation activity. We distinguish between spillovers which influence innovation activity in the wider economy and those which influence productivity. We also consider separately micro-economic studies which focus on the mechanisms through which spillovers occur and macro-economic approaches which focus on economy-wide estimates of spillover effects.

A review of recent international evidence provides little clarity on the scale of spillovers from publicly funded R&D and innovation. Spillover strength appears strongly contextual, varying between sector, technologies and countries. The literature does, however, highlight a range of factors which may strengthen or limit the extent of any spillovers. These lead to a checklist of factors which should be taken into account in any ex ante evaluation of anticipated spillover effects.

A full report is available via the download section of this page.