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How do spatial and social proximity influence knowledge flows? Evidence from patent data

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Author Info
Agrawal, Ajay
Kapur, Devesh
McHale, John

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Abstract

We examine how the spatial and social proximity of inventors affects access to knowledge, focusing especially on how the two forms of proximity interact. Employing patent citation data and using same-MSA and co-ethnicity as proxies for spatial and social proximity, respectively, we estimate a knowledge flow production function. Our results suggest that although spatial and social proximity both increase the probability of knowledge flows between individuals, the marginal benefit of geographic proximity is greater for inventors who are not socially close. We also report that the marginal benefit of being members of the same technical community of practice is greater in terms of access to knowledge for inventors who are not co-located. Overall, these results imply that spatial and social proximity are substitutes in their influence on access to knowledge. We discuss the implications of these findings in terms of the optimal dispersion of socially connected inventors.

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File URL: http://www.sciencedirect.com/science/article/B6WMG-4RSBXW2-2/2/5f4714870b119eaaf0bf4170d6843f41
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Publisher Info
Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 64 (2008)
Issue (Month): 2 (September)
Pages: 258-269
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Handle: RePEc:eee:juecon:v:64:y:2008:i:2:p:258-269

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Web page: http://www.elsevier.com/locate/inca/622905

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Related research
Keywords: Productivity Innovation Knowledge flows Agglomeration Ethnicity Diversity;

Cited by:
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  1. Gerald Carlino & Robert Hunt, 2009. "What explains the quantity and quality of local inventive activity?," Working Papers 09-12, Federal Reserve Bank of Philadelphia. [Downloadable!]
  2. Elisabetta Lodigiani, 2009. "Diaspora Externalities as a Cornerstone of the New Brain Drain Literature," Development Working Papers 277, Centro Studi Luca d\'Agliano, University of Milano. [Downloadable!]
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