14. Science and productivity in European firms: how do regional innovation modes matter?

Barbosa, N., & Faria, A. P. (2026). Science and productivity in European firms: how do regional innovation modes matter? European Planning Studies, 34(1), 84–106. https://doi.org/10.1080/09654313.2025.2570922This article, published in European Planning Studies (2026) by Natália Barbosa and Ana Paula Faria, investigates how scientific knowledge and regional innovation modes influence firm productivity growth across Europe. Using data from 150,712 manufacturing firms located in 161 NUTS II regions in 19 European countries between 2012 and 2017, the study applies the Capello and Lenzi taxonomy to classify regions into five innovation modes, ranging from science-based to imitative innovation. The findings show that scientific knowledge significantly boosts productivity, particularly in Southern European regions and, to a lesser extent, in Eastern Europe, supporting a science-driven convergence process. However, the effects are heterogeneous: highly productive and fast-growing firms benefit most from scientific spillovers, while less productive firms can still achieve efficiency gains through imitation-based strategies. Applied smart innovation modes also emerge as key drivers of long-term productivity growth. The authors conclude that innovation policy should recognize diverse regional innovation paths and strengthen firms’ internal capabilities to absorb external knowledge.