Measuring knowledge spillover effects via conditional nonparametric analysis

Knowledge spillovers are central in modern theories of innovation and growth. There is a large gap, however, between the recognition of the role of spillovers in several theories and the empirical appreciation. In this paper we explore a new approach to the measurement of spillovers. This is based on the exploitation of a recently developed family of techniques in nonparametric efficiency analysis, which allow the estimation of the impact of external factors on the technical efficiency of productive units. We advocate the use of these tools and give a demonstration of their potential, using data at territorial level for Italy.