other factors which may condition economic growth, such as innovation, migration, and the local ‘social filter’, taking also … into account the geographical component of intervention in transport infrastructure and innovation. The results of the two … filter’, good innovation capacity, both in the region and in neighbouring areas, and a region's capacity to attract migrants …

In this Paper we carefully link knowledge flows to and from a firm’s innovation process with this firm’s investment … results indicate that firms with small budgets for innovation will not invest in basic research. This occurs in the short run …