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Technological convergence among US regions and states

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  • 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. 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.
  2. Davelaar, E.J. & Nijkamp, P., 1986. "Spatial dispersion of technological innovation : the incubator hypothesis," Serie Research Memoranda, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics 0049, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  3. Feldman, Maryann P. & Audretsch, David B., 1999. "Innovation in cities:: Science-based diversity, specialization and localized competition," European Economic Review, Elsevier, Elsevier, vol. 43(2), pages 409-429, February.
  4. 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, American Statistical Association, vol. 10(3), pages 251-70, July.
  5. Bernard, Andrew B & Durlauf, Steven N, 1995. "Convergence in International Output," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 10(2), pages 97-108, April-Jun.
  6. Bronwyn H. Hall & Adam B. Jaffe & Manuel Trajtenberg, 2001. "The NBER Patent Citation Data File: Lessons, Insights and Methodological Tools," NBER Working Papers 8498, National Bureau of Economic Research, Inc.
  7. Fujita, M. & Thisse, J.-F., . "Economics of agglomeration," CORE Discussion Papers RP, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) -1250, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  8. Andrew B. Bernard & Steven N. Durlauf, 1994. "Interpreting Tests of the Convergence Hypothesis," NBER Technical Working Papers, National Bureau of Economic Research, Inc 0159, National Bureau of Economic Research, Inc.
  9. Robin L. Lumsdaine & David H. Papell, 1997. "Multiple Trend Breaks And The Unit-Root Hypothesis," The Review of Economics and Statistics, MIT Press, MIT Press, vol. 79(2), pages 212-218, May.
  10. Samuel S. Kortum, 1997. "Research, Patenting, and Technological Change," Econometrica, Econometric Society, Econometric Society, vol. 65(6), pages 1389-1420, November.
  11. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, American Economic Association, vol. 86(3), pages 630-40, June.
  12. Loewy, Michael B. & Papell, David H., 1996. "Are U.S. regional incomes converging? Some further evidence," Journal of Monetary Economics, Elsevier, Elsevier, vol. 38(3), pages 587-598, December.
  13. Carlino, Gerald & Mills, Leonard, 1996. "Are U.S. regional incomes converging? Reply," Journal of Monetary Economics, Elsevier, Elsevier, vol. 38(3), pages 599-601, December.
  14. Carlino, Gerald A. & Mills, Leonard O., 1993. "Are U.S. regional incomes converging? : A time series analysis," Journal of Monetary Economics, Elsevier, Elsevier, vol. 32(2), pages 335-346, November.
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Citations

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Cited by:
  1. Catherine Co & John Landon-Lane & Myeong-Su Yun, 2005. "Inter-State Dynamics of Invention Activities, 1930-2000," Departmental Working Papers, Rutgers University, Department of Economics 200511, Rutgers University, Department of Economics.
  2. 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.
  3. Catherine Co & John List, 2004. "Is foreign direct investment attracted to 'knowledge creators'?," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 36(11), pages 1143-1149.

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