Resumen: This 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. Idioma: Inglés DOI: 10.1111/jors.12279 Año: 2016 Publicado en: JOURNAL OF REGIONAL SCIENCE 56, 5 (2016), 814-847 ISSN: 0022-4146 Factor impacto JCR: 1.743 (2016) Categ. JCR: ECONOMICS rank: 81 / 347 = 0.233 (2016) - Q1 - T1 Categ. JCR: PLANNING & DEVELOPMENT rank: 19 / 55 = 0.345 (2016) - Q2 - T2 Categ. JCR: ENVIRONMENTAL STUDIES rank: 50 / 105 = 0.476 (2016) - Q2 - T2 Factor impacto SCIMAGO: 1.409 - Environmental Science (miscellaneous) (Q1) - Development (Q1)