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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Volume (Year): 35 (2004) Issue (Month): 4 (Winter) Pages: 777-786 Download reference. The following formats are available: HTML
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Find related papers by JEL classification: O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes R32 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location - - - Other Production and Pricing Analysis
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