This article deals with applying the knowledge production function approach to the measuring and the comparison of the quality of regional innovation systems. It is argued that an embeddedness in a well-functioning innovation system should result in a relatively high propensity to innovate and a high productivity of efforts in research and development (R&D). Based on data for eleven European regions, the author has found a number of such statistically significant differences between the manufacturing firms in these regions. Interregional differences in the productivity of R&D activities correspond to some degree with a center-periphery paradigm, which can be found in the literature. Obviously, there exist considerable agglomeration economies that are conducive to R&D activities.
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