ABSTRACT
Innovation is one of the main sources of technological progress, which in turn is strongly linked with economic development. In this paper we want to analyze how R&D, with its spillover dimension, can propagate in a biregional economic system. Since the relationship between sectoral innovative activities and the uneven distribution of output growth rates is well established, we would like to shed some light on the role of R&D to explain backwardness of Italian Southern regions.
