This paper addresses the question of whether foreign ownership matters regarding innovation intensity. It is well documented that foreign firms display lower innovation and R&D intensity than local firms do. However, (foreign) investors bear not only innovation performances in mind when making...

Based on a sample of 1,084 European regions (EU 15) over the period of 1995–2004, we estimate the determinants of regional growth of GDP per capita, allowing for both spatial lag and spatial error dependence. We find that robust LM tests cannot reject the null hypothesis of no spatial...