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On the importance of geographic and technological proximity for R&D spillovers : an empirical investigation

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Michael J. Orlando

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Abstract

Empirical studies of the external effects of R&D suggest that both geographic and technological distance attenuate inter-firm spillovers from innovative activity. The results presented here indicate that the tendency for R&D spillovers to localize economic activity is conditional on the technological relation between spillover generating and receiving firms. The production function framework is generalized to control for correlation between measures of geographic and technological proximity. Coefficient estimates confirm that R&D spillovers are largest among technological neighbors. However, spillovers within narrowly defined technological groups do not appear to be attenuated by distance. Geographic proximity serves to attenuate only those inter-firm spillovers that cross narrowly defined technological boundaries.

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Paper provided by Federal Reserve Bank of Kansas City in its series Research Working Paper with number RWP 00-02.

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Date of creation: 2000
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Handle: RePEc:fip:fedkrw:rwp00-02

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Keywords: Geography;

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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Jason P. Martinek & Michael J. Orlando, 2002. "Do primary energy resources influence industry location?," Economic Review, Federal Reserve Bank of Kansas City, issue Q III, pages 27-44. [Downloadable!]
  2. Borgman, Benny & Braunerhjelm, Pontus, 2007. "Entrepreneurship and Local Growth - a comparison of the U.S. and Sweden," Working Paper Series in Economics and Institutions of Innovation 103, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies. [Downloadable!]
  3. Chad Wilkerson, 2002. "How high tech is the Tenth District?," Economic Review, Federal Reserve Bank of Kansas City, issue Q II, pages 1-27. [Downloadable!]
  4. Michael J. Orlando, 2002. "Measuring R & D spillovers : on the importance of geographic and technological proximity," Research Working Paper RWP 02-06, Federal Reserve Bank of Kansas City. [Downloadable!]
  5. Luigi Aldieri & Michele Cincera, 2009. "Geographic and technological R&D spillovers within the triad: micro evidence from US patents," The Journal of Technology Transfer, Springer, vol. 34(2), pages 196-211, April. [Downloadable!] (restricted)
    Other versions:
  6. Jaakko Simonen & Philip McCann, 2008. "Innovation, R&D cooperation and labor recruitment: evidence from Finland," Small Business Economics, Springer, vol. 31(2), pages 181-194, August. [Downloadable!] (restricted)
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