Knowledge spillovers

Knowledge spillovers occur when the benefits of innovations, ideas, or learning extend beyond the original creator or organization, unintentionally benefiting others. For example, when a company develops a new manufacturing process, nearby businesses or industries might adopt or adapt that knowledge without direct involvement. These spillovers can boost overall productivity and spur further innovation in a region or sector, often leading to economic growth. They happen naturally when information and expertise become accessible through collaboration, competition, or shared networks, creating a positive external effect that enhances overall progress without requiring direct compensation.