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Measuring Spillovers from Industrial R&D: On the Importance of Geographic and Technological Proximity

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  • Michael J. Orlando

    ()
    (Federal Reserve Bank of Kansas City)

Abstract

I present evidence to suggest that an important share of the apparent geographic localization of spillovers from industrial R&D may be an artifact of other agglomerative forces. A production-function framework is used to examine the role of geographic and technological proximity for interfirm spillovers from R&D in SIC 35. Spillovers among firms within narrow, four-digit industrial classifications are generally stronger than those identified within the broader, three-digit class. Such spillovers, however, do not appear to be attenuated by distance. Geographic distance does appear to attenuate spillovers that cross four-digit boundaries, suggesting that they may play a role in the formation of diverse (but not too diverse) industrial agglomerations.

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Bibliographic Info

Article provided by The RAND Corporation in its journal RAND Journal of Economics.

Volume (Year): 35 (2004)
Issue (Month): 4 (Winter)
Pages: 777-786

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Handle: RePEc:rje:randje:v:35:y:2004:4:p:777-786

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Keywords: Management of Technological Innovation and R&D Technological Change: Choices and Consequences; Diffusion Processes (includes impact on production; welfare; income distribution; international competitiveness; military power; measurement; and case studies; international transfer of technology) Other Production and Pricing Analysis (spatial analysis firm location decision; industrial districts) R&D;

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Cited by:
  1. Hussler, Caroline & Ronde, Patrick, 2007. "The impact of cognitive communities on the diffusion of academic knowledge: Evidence from the networks of inventors of a French university," Research Policy, Elsevier, Elsevier, vol. 36(2), pages 288-302, March.
  2. Onur, Sungur & Hidayet, Keskin, 2009. "Coğrafi Yakınlık 'Hala' Önemli mi ? Mekansal İnovasyon Modellerinden Çok-Yerelli Bilgi Dinamiklerine Dönüşüm
    [Does Geographical Proximity Still Matter? Transformation from Local Innovatio
    ," MPRA Paper 40788, University Library of Munich, Germany.
  3. Aldieri, Luigi, 2011. "Knowledge spillovers and productivity in Italian manufacturing firms," MPRA Paper 35018, University Library of Munich, Germany.
  4. Olivier Crevoisier & Hugues Jeannerat, 2009. "Territorial Knowledge Dynamics: From the Proximity Paradigm to Multi-location Milieus," European Planning Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 17(8), pages 1223-1241, August.
  5. Barrios, Salvador & Bertinelli, Luisito & Heinen, Andreas, 2007. "Exploring The Link Between Local And Global Knowledge Spillovers," MPRA Paper 6239, University Library of Munich, Germany.
  6. Oliviero Carboni, 2013. "Spatial and industry proximity in collaborative research: evidence from Italian manufacturing firms," The Journal of Technology Transfer, Springer, Springer, vol. 38(6), pages 896-910, December.
  7. Sergey Lychagin & Joris Pinkse & Margaret E. Slade & John Van Reenen, 2010. "Spillovers in Space: Does Geography Matter?," CEP Discussion Papers, Centre for Economic Performance, LSE dp0991, Centre for Economic Performance, LSE.
  8. Qu, Zhe & Huang, Can & Zhang, Mingqian & Zhao, Yanyun, 2013. "R&D offshoring, technology learning and R&D efforts of host country firms in emerging economies," Research Policy, Elsevier, Elsevier, vol. 42(2), pages 502-516.
  9. Böckerman, Petri & Eero, Lehto & Huovari, Janne, 2008. "The return to the technological frontier: The conditional effect of plants’ R&D on their productivity in Finnish manufacturing," MPRA Paper 8715, University Library of Munich, Germany.
  10. Ana Paula Faria & Natália Barbosa & Vasco Eiriz, 2013. "Firms’ innovation across regions: an exploratory study," NIPE Working Papers, NIPE - Universidade do Minho 12/2013, NIPE - Universidade do Minho.
  11. Uwe Cantner & Andreas Meder, 2006. "Die Wirkung von Forschungskooperationen auf den Unternehmenserfolg - eine Fallstudie zum Landkreis Saalfeld Rudolstadt," Jenaer Schriften zur Wirtschaftswissenschaft, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät 24/2006, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät.
  12. Andrea Caragliu & Peter Nijkamp, 2013. "Space and Knowledge Spillovers in European Regions," Tinbergen Institute Discussion Papers, Tinbergen Institute 13-148/VIII, Tinbergen Institute.
  13. Andrea Bonaccorsi & Cinzia Daraio, 2013. "Knowledge spillover effects at the sub-regional level. Theory and estimation," DIAG Technical Reports, Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza" 2013-13, Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza".
  14. Oliviero A. Carboni, 2013. "A spatial analysis of R&D: the role of industry proximity," Economics of Innovation and New Technology, Taylor & Francis Journals, Taylor & Francis Journals, vol. 22(8), pages 820-839, November.
  15. Eero Lehto, 2011. "On regional specialization of high- and low-tech industries," ERSA conference papers, European Regional Science Association ersa11p832, European Regional Science Association.
  16. Christos Kolympiris & Nicholas Kalaitzandonakes, 2013. "Geographic scope of proximity effects among small life sciences firms," Small Business Economics, Springer, Springer, vol. 40(4), pages 1059-1086, May.
  17. Michael J. Orlando & Michael Verba, 2005. "Do only big cities innovate? : technological maturity and the location of innovation," Economic Review, Federal Reserve Bank of Kansas City, Federal Reserve Bank of Kansas City, issue Q II, pages 31-57.
  18. Femminis, Gianluca & Martini, Gianmaria, 2011. "Irreversible investment and R&D spillovers in a dynamic duopoly," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 35(7), pages 1061-1090, July.
  19. Kyoji Fukao & Victoria Kravtsova & Kentaro Nakajima, 2014. "How important is geographical agglomeration to factory efficiency in Japan’s manufacturing sector?," The Annals of Regional Science, Springer, Springer, vol. 52(3), pages 659-696, May.

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