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Technological convergence among US regions and states

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Author Info

  • Catherine Co
  • Mark Wohar

Abstract

This paper employs unit root tests that allow for two endogenously determined structural breaks to study whether or not invention activities are converging across US regions/states. Using US patent data from 1929 to 1997, we find technological β-convergence in six of the nine Census regions, in 11 of the 14 leading states and in 28 of the 34 lagging states. Stochastic convergence, on the other hand, is found in three regions, in four leading states and in 17 lagging states. Carlino and Mills (1993) point out that both β- and stochastic convergence are necessary conditions for convergence. Putting these results together, we find convergence (both β- and stochastic) in invention activities in three regions, in three leading states and in 16 lagging states.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Economics of Innovation and New Technology.

Volume (Year): 13 (2004)
Issue (Month): 2 ()
Pages: 101-126

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Handle: RePEc:taf:ecinnt:v:13:y:2004:i:2:p:101-126

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Related research

Keywords: Patent; US regions and states; β-Convergence; Stochastic convergence; Unit root test;

References

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  1. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-40, June.
  2. Carlino, Gerald A. & Mills, Leonard O., 1993. "Are U.S. regional incomes converging? : A time series analysis," Journal of Monetary Economics, Elsevier, vol. 32(2), pages 335-346, November.
  3. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," NBER Working Papers 3993, National Bureau of Economic Research, Inc.
  4. Audretsch, David B & Feldman, Maryann P, 1998. "Innovation in Cities: Science-Based Diversity, Specialization and Localized Competition," CEPR Discussion Papers 1980, C.E.P.R. Discussion Papers.
  5. Fujita, Masahisa & Thisse, Jacques-Francois, 1996. "Economics of Agglomeration," Journal of the Japanese and International Economies, Elsevier, vol. 10(4), pages 339-378, December.
  6. Zivot, Eric & Andrews, Donald W K, 1992. "Further Evidence on the Great Crash, the Oil-Price Shock, and the Unit-Root Hypothesis," Journal of Business & Economic Statistics, American Statistical Association, vol. 10(3), pages 251-70, July.
  7. Bernard, A.B. & Durlauf, S.N., 1994. "Interpreting Tests of the Convergence Hypothesis," Working papers 9401r, Wisconsin Madison - Social Systems.
  8. Davelaar, E.J. & Nijkamp, P., 1986. "Spatial dispersion of technological innovation : the incubator hypothesis," Serie Research Memoranda 0049, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  9. Carlino, Gerald & Mills, Leonard, 1996. "Are U.S. regional incomes converging? Reply," Journal of Monetary Economics, Elsevier, vol. 38(3), pages 599-601, December.
  10. Hall, B. & Jaffe, A. & Trajtenberg, M., 2001. "The NBER Patent Citations Data File: Lessons, Insights and Methodological Tools," Papers 2001-29, Tel Aviv.
  11. Bernard, Andrew B & Durlauf, Steven N, 1995. "Convergence in International Output," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(2), pages 97-108, April-Jun.
  12. Loewy, Michael B. & Papell, David H., 1996. "Are U.S. regional incomes converging? Some further evidence," Journal of Monetary Economics, Elsevier, vol. 38(3), pages 587-598, December.
  13. Samuel S. Kortum, 1997. "Research, Patenting, and Technological Change," Econometrica, Econometric Society, vol. 65(6), pages 1389-1420, November.
  14. Robin L. Lumsdaine & David H. Papell, 1997. "Multiple Trend Breaks And The Unit-Root Hypothesis," The Review of Economics and Statistics, MIT Press, vol. 79(2), pages 212-218, May.
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Citations

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Cited by:
  1. Habibullah, M.S. & Dayang-Afizzah, A.M., 2008. "Bordering neighbours: Testing for border effect on Malaysia's northern states and Southern Thailand," MPRA Paper 12103, University Library of Munich, Germany.
  2. Catherine Co & John List, 2004. "Is foreign direct investment attracted to 'knowledge creators'?," Applied Economics, Taylor & Francis Journals, vol. 36(11), pages 1143-1149.
  3. John S. Landon-Lane & Catherine Y. Co & Myeong-Su Yun, 2006. "Inter-state dynamics of invention activities, 1930-2000," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(8), pages 1111-1134.

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