This chapter aims at understanding how international knowledge flows in Europe have been developing over time and discuss their main driversand impacts. The chapter will distinguish between different types of mechanisms for the acquisition and transfer of knowledge. Knowledge can be exchanged internationally intentionally through market transactions, formal and informal networks and foreign direct investments, and unintentionally through networks and the mobility of human capital (also referred to as spillovers) (Chaminade et al, 2015). For each section, we will start with a general overview of trends, paying particular attention to how Europe is positioned with respect to its competitors. Then, we will investigate the importance of intra versus extra European flows of knowledge and generally discuss the expected impact of the observed trends.
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