IDEAS home Printed from https://ideas.repec.org/p/hit/remfce/58.html
   My bibliography  Save this paper

Localization of Collaborations in Knowledge Creation

Author

Listed:
  • Inoue, Hiroyasu
  • Nakajima, Kentaro
  • Saito, Yukiko Umeno

Abstract

This study investigates the localization of collaboration in knowledge creation by using the data on Japanese patent applications. Applying distance-based methods, we obtained the following results. First, collaborations are significantly localized at the 5% level with a localization range of approximately 100 km. Second, the localization of collaboration is observed in most technologies. Third, the extent of localization was stable from 1986–2005 despite extensive developments in information and communications technology that facilitate communication between remote organizations. Fourth, the extent of localization is substantially greater in inter-firm collaborations than in intra-firm collaborations. Furthermore, in inter-firm collaborations, the extent of localization is greater in collaborations with small firms. This result suggests that geographic proximity mitigates the firm-border effects in collaborations, especially for small firms.

Suggested Citation

  • Inoue, Hiroyasu & Nakajima, Kentaro & Saito, Yukiko Umeno, 2016. "Localization of Collaborations in Knowledge Creation," HIT-REFINED Working Paper Series 58, Institute of Economic Research, Hitotsubashi University.
  • Handle: RePEc:hit:remfce:58
    as

    Download full text from publisher

    File URL: https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/27820/wp058.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. William R. Kerr & Scott Duke Kominers, 2015. "Agglomerative Forces and Cluster Shapes," The Review of Economics and Statistics, MIT Press, vol. 97(4), pages 877-899, October.
    2. Marcus Berliant & Masahisa Fujita, 2008. "Knowledge Creation As A Square Dance On The Hilbert Cube," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(4), pages 1251-1295, November.
    3. Nakajima, Kentaro & Saito, Yukiko Umeno & Uesugi, Iichiro, 2012. "Measuring economic localization: Evidence from Japanese firm-level data," Journal of the Japanese and International Economies, Elsevier, vol. 26(2), pages 201-220.
    4. 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.
    5. Crescenzi, Riccardo & Nathan, Max & Rodríguez-Pose, Andrés, 2016. "Do inventors talk to strangers? On proximity and collaborative knowledge creation," Research Policy, Elsevier, vol. 45(1), pages 177-194.
    6. INOUE Hiroyasu & NAKAJIMA Kentaro & SAITO Yukiko, 2014. "Localization of Knowledge-creating Establishments," Discussion papers 14053, Research Institute of Economy, Trade and Industry (RIETI).
    7. Sergey Lychagin & Joris Pinkse & Margaret E. Slade & John Van Reenen, 2016. "Spillovers in Space: Does Geography Matter?," Journal of Industrial Economics, Wiley Blackwell, vol. 64(2), pages 295-335, June.
    8. Yasusada Murata & Ryo Nakajima & Ryosuke Okamoto & Ryuichi Tamura, 2014. "Localized Knowledge Spillovers and Patent Citations: A Distance-Based Approach," The Review of Economics and Statistics, MIT Press, vol. 96(5), pages 967-985, December.
    9. Athukorala, Prema-chandra & Sen, Kunal, 2004. "The Determinants of Private Saving in India," World Development, Elsevier, vol. 32(3), pages 491-503, March.
    10. Stuart S. Rosenthal & William C. Strange, 2003. "Geography, Industrial Organization, and Agglomeration," The Review of Economics and Statistics, MIT Press, vol. 85(2), pages 377-393, May.
    11. Coe, David T. & Helpman, Elhanan, 1995. "International R&D spillovers," European Economic Review, Elsevier, vol. 39(5), pages 859-887, May.
    12. Giuseppe Arbia & Giuseppe Espa & Danny Quah, 2009. "A class of spatial econometric methods in the empirical analysis of clusters of firms in the space," Studies in Empirical Economics, in: Giuseppe Arbia & Badi H. Baltagi (ed.), Spatial Econometrics, pages 81-103, Springer.
    13. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1993. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 577-598.
    14. Rachel Griffith & Sokbae Lee & John Van Reenen, 2011. "Is distance dying at last? Falling home bias in fixed‐effects models of patent citations," Quantitative Economics, Econometric Society, vol. 2(2), pages 211-249, July.
    15. Gilles Duranton & Henry G. Overman, 2005. "Testing for Localization Using Micro-Geographic Data," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(4), pages 1077-1106.
    16. Glenn Ellison & Edward L. Glaeser & William R. Kerr, 2010. "What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns," American Economic Review, American Economic Association, vol. 100(3), pages 1195-1213, June.
    17. Stantcheva, Stefanie & Akcigit, Ufuk & Caicedo Soler, Santiago & Miguelez, Ernest & Sterzi, Valerio, 2018. "Dancing with the Stars: Innovation through Interactions," CEPR Discussion Papers 12819, C.E.P.R. Discussion Papers.
    18. Wolfgang Keller & Stephen Ross Yeaple, 2013. "The Gravity of Knowledge," American Economic Review, American Economic Association, vol. 103(4), pages 1414-1444, June.
    19. SAITO Yukiko & YAMAUCHI Isamu, 2015. "Inventors' Mobility and Organizations' Productivity: Evidence from Japanese rare name inventors," Discussion papers 15128, Research Institute of Economy, Trade and Industry (RIETI).
    20. Rosenthal, Stuart S. & Strange, William C., 2001. "The Determinants of Agglomeration," Journal of Urban Economics, Elsevier, vol. 50(2), pages 191-229, September.
    21. Jarno Hoekman & Koen Frenken & Frank Oort, 2009. "The geography of collaborative knowledge production in Europe," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(3), pages 721-738, September.
    22. INOUE Hiroyasu & NAKAJIMA Kentaro & SAITO Yukiko, 2015. "Innovation and Collaboration Patterns between Research Establishments," Discussion papers 15049, Research Institute of Economy, Trade and Industry (RIETI).
    23. John Hagedoorn, 2003. "Sharing intellectual property rights--an exploratory study of joint patenting amongst companies," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 12(5), pages 1035-1050, October.
    24. Madsen, Jakob B., 2007. "Technology spillover through trade and TFP convergence: 135 years of evidence for the OECD countries," Journal of International Economics, Elsevier, vol. 72(2), pages 464-480, July.
    25. Wagner, Alfred, 1891. "Marshall's Principles of Economics," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 5, pages 319-338.
    26. Eric Marcon & Florence Puech, 2003. "Evaluating the Geographic Concentration of Industries Using Distance-Based Methods," Post-Print halshs-00372646, HAL.
    27. Peter Thompson & Melanie Fox-Kean, 2005. "Patent Citations and the Geography of Knowledge Spillovers: A Reassessment: Reply," American Economic Review, American Economic Association, vol. 95(1), pages 465-466, March.
    28. HUO Dong & MOTOHASHI Kazuyuki, 2015. "Understanding Two Types of Technological Diversity and their Effects on the Technological Value of Outcomes from Bilateral Inter-firm R&D Alliances," Discussion papers 15064, Research Institute of Economy, Trade and Industry (RIETI).
    29. Goto, Akira & Motohashi, Kazuyuki, 2007. "Construction of a Japanese Patent Database and a first look at Japanese patenting activities," Research Policy, Elsevier, vol. 36(9), pages 1431-1442, November.
    30. Katz, J. Sylvan & Martin, Ben R., 1997. "What is research collaboration?," Research Policy, Elsevier, vol. 26(1), pages 1-18, March.
    31. Hoekman, Jarno & Frenken, Koen & Tijssen, Robert J.W., 2010. "Research collaboration at a distance: Changing spatial patterns of scientific collaboration within Europe," Research Policy, Elsevier, vol. 39(5), pages 662-673, June.
    32. Ron Boschma, 2005. "Proximity and Innovation: A Critical Assessment," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 61-74.
    33. Maskus, Keith E. & McDaniel, Christine, 1999. "Impacts of the Japanese patent system on productivity growth," Japan and the World Economy, Elsevier, vol. 11(4), pages 557-574, December.
    34. Peter Thompson & Melanie Fox-Kean, 2005. "Patent Citations and the Geography of Knowledge Spillovers: A Reassessment," American Economic Review, American Economic Association, vol. 95(1), pages 450-460, March.
    35. Mohammad Arzaghi & J. Vernon Henderson, 2008. "Networking off Madison Avenue," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 75(4), pages 1011-1038.
    36. Lerner, Josh, 1995. "Venture Capitalists and the Oversight of Private Firms," Journal of Finance, American Finance Association, vol. 50(1), pages 301-318, March.
    37. Eric Marcon & Florence Puech, 2010. "Measures of the geographic concentration of industries: improving distance-based methods," Journal of Economic Geography, Oxford University Press, vol. 10(5), pages 745-762, September.
    38. Sumit Agarwal, 2010. "Distance and Private Information in Lending," The Review of Financial Studies, Society for Financial Studies, vol. 23(7), pages 2757-2788, July.
    39. Roderik Ponds & Frank Van Oort & Koen Frenken, 2007. "The geographical and institutional proximity of research collaboration," Papers in Regional Science, Wiley Blackwell, vol. 86(3), pages 423-443, August.
    40. Eric Marcon & Florence Puech, 2003. "Evaluating the geographic concentration of industries using distance-based methods," Journal of Economic Geography, Oxford University Press, vol. 3(4), pages 409-428, October.
    41. Eric Marcon & Florence Puech, 2003. "Evaluating the Geographic Concentration of Industries Using Distance-Based Methods," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00372646, HAL.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hiroyasu Inoue, 2018. "The community structure of business establishments and its properties: evidence from joint patent applications," Evolutionary and Institutional Economics Review, Springer, vol. 15(2), pages 465-475, December.
    2. Hiroyasu Inoue & Kentaro Nakajima & Tetsuji Okazaki & Yukiko U. Saito, 2022. "The Role of Face-to-face Contact on Innovation: Evidence from the Spanish Flu Pandemic in Japan," CIGS Working Paper Series 22-007E, The Canon Institute for Global Studies.
    3. Carlino, Gerald & Kerr, William R., 2015. "Agglomeration and Innovation," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 349-404, Elsevier.
    4. Eduardo Gonçalves & Henrique Silva Costa & Rosa Livia Montenegro & Tulio Chiarini & Juliana Gonçalves Taveira, 2023. "Green technology co-patenting networks: international dynamics," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(2), pages 1603-1627, April.
    5. INOUE Hiroyasu & NAKAJIMA Kentaro & SAITO Yukiko, 2017. "The Impact of the Opening of High-Speed Rail on Innovation," Discussion papers 17034, Research Institute of Economy, Trade and Industry (RIETI).
    6. Carlino, Gerald & Kerr, William R., 2015. "Agglomeration and Innovation," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 349-404, Elsevier.
    7. Edilberto Tiago Almeida & Raul Mota Silveira Neto & Jaime Macedo Brito Bastos & Rubens Lopes Pereira Silva, 2021. "Location patterns of service activities in large metropolitan areas: the Case of São Paulo," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 67(2), pages 451-481, October.
    8. Anna Varga-Csajkás & Tamás Sebestyén & Attila Varga, 2023. "Dynamics of collaboration among high-growth firms: results from an agent-based policy simulation," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 70(2), pages 353-377, April.
    9. INOUE Hiroyasu & NAKAJIMA Kentaro & SAITO Yukiko, 2015. "Innovation and Collaboration Patterns between Research Establishments," Discussion papers 15049, Research Institute of Economy, Trade and Industry (RIETI).
    10. INOUE Hiroyasu & NAKAJIMA Kentaro & SAITO Yukiko, 2014. "Localization of Knowledge-creating Establishments," Discussion papers 14053, Research Institute of Economy, Trade and Industry (RIETI).
    11. Zhao‐hui Chong & Jia Liu, 2023. "The evolutionary patterns of intercity co‐invention networks in the Greater Pearl River Delta, China: A comparative analysis based on the technological intensity of industry," Growth and Change, Wiley Blackwell, vol. 54(1), pages 260-283, March.
    12. repec:bof:bofrdp:urn:nbn:fi:bof-201512111472 is not listed on IDEAS
    13. Hu, Guangyuan & Ni, Rong & Tang, Li, 2022. "Do international nonstop flights foster influential research? Evidence from Sino-US scientific collaboration," Journal of Informetrics, Elsevier, vol. 16(4).
    14. HAMAGUCHI Nobuaki & KONDO Keisuke, 2015. "Fresh Brain Power and Quality of Innovation in Cities: Evidence from the Japanese patent database," Discussion papers 15108, Research Institute of Economy, Trade and Industry (RIETI).
    15. Hiroyasu Inoue & Kentaro Nakajima & Tetsuji Okazaki & Yukiko U. Saito, 2022. "Controlling Funds Allocation for the War: The Experience of Japan in the Late 1930s," CIRJE F-Series CIRJE-F-1192, CIRJE, Faculty of Economics, University of Tokyo.
    16. SAITO Yukiko & YAMAUCHI Isamu, 2015. "Inventors' Mobility and Organizations' Productivity: Evidence from Japanese rare name inventors," Discussion papers 15128, Research Institute of Economy, Trade and Industry (RIETI).
    17. repec:zbw:bofrdp:2015_027 is not listed on IDEAS
    18. repec:zbw:bofrdp:urn:nbn:fi:bof-201512111472 is not listed on IDEAS

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Carlino, Gerald & Kerr, William R., 2015. "Agglomeration and Innovation," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 349-404, Elsevier.
    2. Kristy Buzard & Gerald A. Carlino & Jake Carr & Robert M. Hunt & Tony E. Smith, 2015. "Localized Knowledge Spillovers: Evidence from the Agglomeration of American R&D Labs and Patent Data," Working Papers 15-3, Federal Reserve Bank of Philadelphia.
    3. William R. Kerr & Scott Duke Kominers, 2015. "Agglomerative Forces and Cluster Shapes," The Review of Economics and Statistics, MIT Press, vol. 97(4), pages 877-899, October.
    4. Gerald A. Carlino & Jake Carr & Robert M. Hunt & Tony E. Smith, 2010. "The agglomeration of R&D labs," Working Papers 10-33, Federal Reserve Bank of Philadelphia.
    5. William R. Kerr & Frederic Robert-Nicoud, 2020. "Tech Clusters," Journal of Economic Perspectives, American Economic Association, vol. 34(3), pages 50-76, Summer.
    6. Carlino, Gerald & Kerr, William R., 2015. "Agglomeration and Innovation," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 349-404, Elsevier.
    7. repec:zbw:bofrdp:2015_027 is not listed on IDEAS
    8. Mori, Tomoya & Sakaguchi, Shosei, 2018. "Collaborative knowledge creation: Evidence from Japanese patent data," MPRA Paper 88716, University Library of Munich, Germany.
    9. INOUE Hiroyasu & NAKAJIMA Kentaro & SAITO Yukiko, 2014. "Localization of Knowledge-creating Establishments," Discussion papers 14053, Research Institute of Economy, Trade and Industry (RIETI).
    10. repec:bof:bofrdp:urn:nbn:fi:bof-201512111472 is not listed on IDEAS
    11. repec:zbw:bofrdp:urn:nbn:fi:bof-201512111472 is not listed on IDEAS
    12. Gabriel Lang & Eric Marcon & Florence Puech, 2020. "Distance-based measures of spatial concentration: introducing a relative density function," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(2), pages 243-265, April.
    13. Behrens, Kristian & Bougna, Théophile, 2015. "An anatomy of the geographical concentration of Canadian manufacturing industries," Regional Science and Urban Economics, Elsevier, vol. 51(C), pages 47-69.
    14. Hyuk-Soo Kwon & Jihong Lee & Sokbae Lee & Ryungha Oh, 2022. "Knowledge spillovers and patent citations: trends in geographic localization, 1976–2015," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 31(3), pages 123-147, April.
    15. Edward L. Glaeser & William R. Kerr, 2009. "Local Industrial Conditions and Entrepreneurship: How Much of the Spatial Distribution Can We Explain?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(3), pages 623-663, September.
    16. Marcon, Eric & Puech, Florence, 2017. "A typology of distance-based measures of spatial concentration," Regional Science and Urban Economics, Elsevier, vol. 62(C), pages 56-67.
    17. Tomoya Mori & Shosei Sakaguchi, 2019. "Creation of knowledge through exchanges of knowledge: Evidence from Japanese patent data," Papers 1908.01256, arXiv.org, revised Aug 2020.
    18. Kristy Buzard & Gerald A. Carlino & Jake Carr & Robert M. Hunt & Tony E. Smith, 2017. "The Agglomeration of American Research and Development Labs," Working Papers 17-18, Federal Reserve Bank of Philadelphia.
    19. Marta R. Casanova & Vicente Orts & José M. Albert, 2017. "Sectoral scope and colocalisation of Spanish manufacturing industries," Journal of Geographical Systems, Springer, vol. 19(1), pages 65-92, January.
    20. Barlet, M. & Briant, A. & Crusson, L., 2013. "Location patterns of service industries in France: A distance-based approach," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 338-351.
    21. Keith Head & Yao Amber Li & Asier Minondo, 2019. "Geography, Ties, and Knowledge Flows: Evidence from Citations in Mathematics," The Review of Economics and Statistics, MIT Press, vol. 101(4), pages 713-727, October.
    22. Crescenzi, Riccardo & Nathan, Max & Rodríguez-Pose, Andrés, 2016. "Do inventors talk to strangers? On proximity and collaborative knowledge creation," Research Policy, Elsevier, vol. 45(1), pages 177-194.
    23. Nakajima, Kentaro & Saito, Yukiko Umeno & Uesugi, Iichiro, 2012. "Measuring economic localization: Evidence from Japanese firm-level data," Journal of the Japanese and International Economies, Elsevier, vol. 26(2), pages 201-220.

    More about this item

    Keywords

    Knowledge creation; Collaboration; Geographic frictions; Firm-border effects;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hit:remfce:58. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Digital Resources Section, Hitotsubashi University Library (email available below). General contact details of provider: https://edirc.repec.org/data/iehitjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.