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Q uatraro F. Diffusion of regional innovation capabilities: evidence from Italian patent data, Regional Studies. This paper investigates the diffusion of regional innovation capabilities within the manufacturing sector. The competence-based theory of the region allows for combining the Schumpeterian view upon innovation and business cycles and the growth poles theory. Innovation capabilities spread within the region after the expansion of the propulsive sector due to learning dynamics. Adopting a methodology for the analysis of diffusion processes, the paper presents empirical evidence on Italian regions. The results show that in late industrialized regions the diffusion of innovation capabilities is faster than in the early industrialized ones. The role of research and development and complementary changes in the economic structure is also investigated.