<em>This post is co-authored by <a href="http://simpatic.eu/author/rene-belderbos/" target="_blank">Rene Belderbos</a>, KU leuven.</em> It is well established in the literature that there are intra- and inter-sectoral knowledge spillovers, which are national and cross-border, and mean that the social rate of return from R&D exceeds the private rate of return. It is essential...