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Measuring R & D spillovers : on the importance of geographic and technological proximity

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  • Michael J. Orlando

Abstract

Evidence is presented which suggest that an important measure of the apparent geographic localization of R&D spillovers may be an artifact of industrial agglomeration. A production function framework is used to examine the role of geographic and technological proximity for inter-firm spillovers from R&D. The largest spillovers are found to flow between firms in the same industry. However, spillovers within narrowly defined technological groups do not appear to be attenuated by distance. Geographic proximity does appear to attenuate spillovers that cross narrowly defined technological boundaries, suggesting these spillovers may play a role in the agglomeration of a diversity of industrial activity.

Suggested Citation

  • 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.
  • Handle: RePEc:fip:fedkrw:rwp02-06
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    2. G. Medda & C. Piga, 2004. "R&S e spillover industriali: un'analisi sulle imprese italiane," Working Paper CRENoS 200406, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    3. Bjoern Alecke & Gerhard Untiedt, 2006. "Die geografische Konzentration von Industrie und Dienstleistungen in Deutschland. Neue empirische Evidenz mittels des Ellison-Glaeser-Index," Working Papers 2-2006, GEFRA - Gesellschaft fuer Finanz- und Regionalanalysen.
    4. Hasan A. Faruq & Margaret L. Weidner, 2018. "Culture, Institutions, and Firm Performance," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 44(4), pages 519-534, September.

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