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Knowledge Flows and Knowledge Externalities

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  • Giovanni Peri

Abstract

The diffusion of knowledge in the world generates positive externalities if knowledge flows increase the productivity of R&D. Our work analyzes knowledge diffusion and knowledge externalities in generating innovation and in determining productivity. We first estimate the determinants of knowledge flows across 141 sub-national regions in 19 countries of Europe and North America as revealed by patent citation between US-granted patents. Then we estimate the impact of these flows on productivity of R&D resources in generating innovation (patenting) and productivity (TFP). While we find that knowledge diffusion depends on geographical and technological distance and is well described by a pseudo-gravity model, we do not find evidence of significant positive externalities from existing knowledge.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2002/wp-cesifo-2002-08/765.pdf
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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 765.

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Date of creation: 2002
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Handle: RePEc:ces:ceswps:_765

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Keywords: knowledge flows; innovation; patent citations regions;

References

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  1. Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," UWO Department of Economics Working Papers, University of Western Ontario, Department of Economics 8904, University of Western Ontario, Department of Economics.
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  17. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
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Cited by:
  1. repec:got:cegedp:100 is not listed on IDEAS
  2. Agnieszka Gehringer, 2011. "Pecuniary knowledge externalities and innovation: intersectoral linkages and their effects beyond technological spillovers," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(5), pages 495-515.

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