The channels and mechanisms of knowledge flows define the links that make up production and innovation systems. As such, they relate directly or indirectly to all policies that affect such systems. Knowledge flows are also directly related to intellectual property protection policies and competition policies that create the infrastructure supporting various forms of formal interaction among economic agents in production and innovation systems. Knowledge Flows in European Industry presents the results of an extensive research programme funded by the European Commission to empirically appraise the dissemination of knowledge relevant to the innovative activities of European manufacturing and service sectors. It explores the extent, density, and mechanism of innovation-related knowledge flows affecting the innovative capacity of European industry and the mechanisms that support such flows, as well as examining incentives to access and transmit results and the determinants of knowledge transmission. Featuring contributions from leading international scholars including Anthony Arundel and Bent Dalum, this interdisciplinary volume focuses on questions of interest to regional, national, and pan-European science, technology and innovation policy, and will be an important read for those involved in business and management as well as those in the field of economics.