Knowledge spillover refers to the process by which information, skills, and innovations developed in one context or organization spread to others. This can occur through informal interactions, collaborations, or even competition, allowing different entities to benefit from each other's advancements without direct transactions. This phenomenon is often observed in innovation clusters, where companies and research institutions are in close proximity. For example, in areas like Silicon Valley, the exchange of ideas among tech firms can lead to rapid advancements and new products, enhancing overall economic growth and fostering a culture of creativity and innovation.