of R&D. Our work analyzes knowledge diffusion and knowledge externalities in generating innovation and in determining … North America as revealed by patent citation between US-granted patents. Then we estimate the impact of these flows on … productivity of R&D resources in generating innovation (patenting) and productivity (TFP). While we find that knowledge diffusion …

contributes to innovation in source countries. We use changes in the labour mobility legislation within Europe as exogenous … variation to establish causality. By analysing patent citation data, we further provide evidence that these positive effects are …