doi:10.1111/jors.12279engSanso-Navarro, M.Vera-Cabello, M.Regional Growth, Innovation, and Latent Nonlinear EffectsART-2016-97110This paper studies the link between knowledge, innovation, and growth in European regions using nonparametric methods. Our findings suggest that knowledge inputs and the share of innovative firms have a heterogeneous and nonlinear relationship with growth. This evidence has been exploited to examine the consequences of alternative policies using a counterfactual estimation setup, the results of which imply that increasing the formal knowledge base may be optimal in most regions. Less knowledge and innovation intensive regions will also benefit from a higher innovation potential and from a trustworthy and entrepreneurial economic environment.2016http://zaguan.unizar.es/record/14786510.1111/jors.12279http://zaguan.unizar.es/record/147865oai:zaguan.unizar.es:147865info:eu-repo/grantAgreement/ES/DGA/S16-ADETREinfo:eu-repo/grantAgreement/ES/MINECO/ECO2013-45969-PJOURNAL OF REGIONAL SCIENCE 56, 5 (2016), 814-847All rights reservedhttp://www.europeana.eu/rights/rr-f/info:eu-repo/semantics/openAccess