Knowledge spillover effects: empirical evidence from Russian regions

This study contributes to existing literature on the relationship between productivity and innovation through the knowledge spillover effects. To this end, we consider both a theoretical model and an empirical analysis in Russia. The investigation is based upon a dataset composed of 85 Russian regions for the period 2010-2014. In particular, the effect of R&D Spillovers are analysed through the use of spatial econometric techniques. In so doing, we have allowed the productivity of each region to be affected by the productivity of nearby regions. Results show that R&D significantly affects Russian regions productivity and that productivity spillover across regions matter.