Fatemeh Taleghani - PhD student, College of Management and Economics, Shahid Bahonar University, Kerman, Iran
Seyed Abdolmajid Jalaee Esfandabadi - Full Professor, College of Management and Economics Shahid Bahonar University, Kerman, Iran
Fatemeh Irani Kermani - Lecturer, College of Management and Economics Shahid Bahonar University, Kerman, Iran

Generally, knowledge spillovers result in the creation of new knowledge, increased competitive advantages, and economic cooperation. Since the investigation of spillover flows among countries is considered to be highly important, in this study, knowledge spillovers and its resulting externalities were considered among a number of selected European countries during 1995 to 2011 using spatial econometric analysis. The results indicated an indirect effect and positive feedback caused by changing human development index, research and development expenditure, and knowledge-bearing imports, which confirmed the existence of spillovers and adsorption capacity in this region.

Externality, Knowledge Spillovers, Spatial Econometrics