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Technology Diffusion, Services, and Endogenous Growth in Europe: Is the Lisbon Strategy Useful?
The authors explore the role of business services in knowledge accumulation and growth and the determinants of knowledge diffusion including the role of distance. A continuous-time model is estimated on several European countries, Japan, and the United States.
Link
http://www.imf.org/external/pubs/ft/wp/2005/wp05103.pdf