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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

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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Bibliographic Info

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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Citations

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Cited by:
  1. 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.
  2. Vecchi, Alessandra & Brennan, Louis, 2009. "A cultural perspective on innovation in international manufacturing," Research in International Business and Finance, Elsevier, vol. 23(2), pages 181-192, June.
  3. Aiello, Francesco & Cardamone, Paola, 2012. "Regional economic divide and the role of technological spillovers in Italy. Evidence from microdata," Structural Change and Economic Dynamics, Elsevier, vol. 23(3), pages 205-220.
  4. Chad Wilkerson, 2002. "How high tech is the Tenth District?," Economic Review, Federal Reserve Bank of Kansas City, issue Q II, pages 1-27.
  5. Luigi Aldieri & Michele Cincera, 2009. "Geographic and technological R&D spillovers within the triad: Micro evidence from US patents," ULB Institutional Repository 2013/111934, ULB -- Universite Libre de Bruxelles.
  6. DAUTEL Vincent & WALTHER Olivier, 2011. "The geography of innovation in the Luxembourg metropolitan region: an intra-regional approach," CEPS/INSTEAD Working Paper Series 2011-38, CEPS/INSTEAD.
  7. 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.
  8. Fredin, Sabrina, 2012. "The Dynamics and Evolution of Local Industries – The case of Linköping," CIRCLE Electronic Working Papers 2012/7, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  9. Paola Cardamone, 2012. "A micro-econometric analysis of the role of R&D spillovers using a nonlinear translog specification," Journal of Productivity Analysis, Springer, vol. 37(1), pages 41-58, February.
  10. 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.
  11. 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.
  12. Matteo Bugamelli & Luigi Cannari & Francesca Lotti & Silvia Magri, 2012. "The innovation gap of Italy’s production system: roots and possible solutions," Questioni di Economia e Finanza (Occasional Papers) 121, Bank of Italy, Economic Research and International Relations Area.

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