The goal of the project is an empirical analysis of knowledge flows in the European manufacturing industry and service sector, and of the implications of knowledge flows for the corresponding innovation behaviour. There are different kinds of knowledge flows: Codified knowledge can be imparted via formal information channels (e.g. rules, laws, regulations etc.), whereas non-codified knowledge is tied to employees and hence cannot be conveyed via formal information channels. We will study knowledge flows between companies as well as between companies and the scientific sector (universities and research institutes). For the purpose of this study, already existing databases (PACE; CIS, EPO etc.) will be evaluated. In addition, we will conduct telephone interviews with companies in Denmark, France, Italy, Greece, Great Britain, the Netherlands, and Germany.