38th Congress of the European Regional Science Association: "Europe Quo Vadis? - Regional Questions at the Turn of the Century", 28 August - 1 September 1998, Vienna, Austria
While different studies have supported the existence of knowledge spillovers and shown their importance for economic growth, very few have focused on analysing their relation with the propensity for industrial activity to cluster spatially. The main purpose of this paper is to examine the geographic concentration of industrial activity in Spain, specially of innovative activity, and to link it with the existence of knowledge externalities. This analysis will be based in the marshallian concept of external economies. As Marshall argues, there may be gegraphic limitations to information flows or knowledge spillovers among the firms in an industry. Firstly, this paper will present the spatial distribution of industrial and innovative activities in Spain and then it will attempt to examine if knowledege spillovers play a role in this distribution. Keywords: technological spillovers, industrial location, R+D Theme of session: i)Technology, innovation and space Theme of session: i) Technology, innovation and space.