De Leon, Maverick2017-09-282017-09-282016http://hdl.handle.net/2440/108119This item is only available electronically.Abstract This paper investigates the determinants of innovation among Australian regions, focusing on the spatial dimension of innovation and innovative-related activities in creating spillover effects. Through `exploratory' and `confirmatory' spatial data analysis we find evidence that innovation activity is spatially dependent, and that there is evidence of spatial clustering of highly innovative regions. Applying spatial econometric techniques, we estimate a Spatial (panel) Durbin Model to control for spatial autocorrelation to analyse the driving forces of innovation throughout regions. We find that the number of university campuses within a region along with university research has a significant and positive effect on local levels of innovation. In terms of spillover effects, we find that population density creates a negative indirect effect; where neighbouring region's population density adversely impacts innovation levels.Honours; EconomicsThesis