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Localized knowledge spillovers and patent citations: A distance-based approach

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  • Yasusada Murata

    ()
    (Advanced Research Institute for the Sciences and Humanities, Nihon University)

  • Ryo Nakajima

    ()
    (Department of Economics, Yokohama National University)

  • Ryosuke Okamoto

    ()
    (National Graduate Institute for Policy Studies)

  • Ryuichi Tamura

    ()
    (Graduate School of Humanities and Social Sciences, University of Tsukuba)

Abstract

We develop a new approach to localized knowledge spillovers by incorporating the concept of control patents (Jaffe, Trajtenberg and Henderson 1993) into the distancebased test of localization (Duranton and Overman, 2005). Using microgeographic data, we identify localization distance while allowing for cross-boundary spillovers, unlike the existing literature where the extent of localized knowledge spillovers is detected at the state or metropolitan statistical area level. We revisit the recent debate by Thompson and Fox-Kean (2005) and Henderson, Jaffe and Trajtenberg (2005) on the existence of localized knowledge spillovers, and find solid evidence supporting localization, even when finer controls are used.

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File URL: http://www.kier.kyoto-u.ac.jp/DP/DP763.pdf
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Bibliographic Info

Paper provided by Kyoto University, Institute of Economic Research in its series KIER Working Papers with number 763.

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Length: 32pages
Date of creation: Mar 2011
Date of revision:
Handle: RePEc:kyo:wpaper:763

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Keywords: localized knowledge spillovers; distance-based tests; microgeographic data; K-density; patent citations; control patents;

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References

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  1. Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2005. "Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic Schools," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 113(1), pages 151-184, February.
  2. Desmet, Klaus & Rossi-Hansberg, Esteban, 2009. "Spatial Development," CEPR Discussion Papers, C.E.P.R. Discussion Papers 7479, C.E.P.R. Discussion Papers.
  3. Peter Thompson, 2004. "Patent Citations and the Geography of Knowledge Spillovers: Evidence from Inventor- and Examiner-Added Citations," Working Papers, Florida International University, Department of Economics 0405, Florida International University, Department of Economics, revised Jun 2005.
  4. Peter Thompson & Melanie Fox Kean, 2004. "Patent Citations and the Geography of Knowledge Spillovers: A Reassessment," Working Papers, Florida International University, Department of Economics 0401, Florida International University, Department of Economics.
  5. William R. Kerr & Scott Duke Kominers, 2010. "Agglomerative Forces and Cluster Shapes," NBER Working Papers 16639, National Bureau of Economic Research, Inc.
  6. Pierre-Philippe Combes & Gilles Duranton, 2001. "Labor pooling, labor poaching and spatial clustering," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 20103, London School of Economics and Political Science, LSE Library.
  7. Glenn Ellison & Edward L. Glaeser & William R. Kerr, 2007. "What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns," Harvard Business School Working Papers 07-064, Harvard Business School.
  8. Duranton, Gilles & Martin, Philippe & Mayer, Thierry & Mayneris, Florian, 2010. "The Economics of Clusters: Lessons from the French Experience," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780199592203, October.
  9. Agrawal, Ajay & Cockburn, Iain & Rosell, Carlos, 2010. "Not Invented Here? Innovation in company towns," Journal of Urban Economics, Elsevier, vol. 67(1), pages 78-89, January.
  10. Nakajima, Ryo & Tamura, Ryuichi & Hanaki, Nobuyuki, 2010. "The effect of collaboration network on inventors' job match, productivity and tenure," Labour Economics, Elsevier, Elsevier, vol. 17(4), pages 723-734, August.
  11. Agrawal, Ajay & Kapur, Devesh & McHale, John, 2008. "How do spatial and social proximity influence knowledge flows? Evidence from patent data," Journal of Urban Economics, Elsevier, vol. 64(2), pages 258-269, September.
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Citations

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Cited by:
  1. Naoto Jinji & Xingyuan Zhang & Shoji Haruna, 2012. "The Effect of Regional Trade Agreements on Technology Spillovers through International Trade," Discussion papers e-11-006, Graduate School of Economics Project Center, Kyoto University.
  2. Gerald A. Carlino & Jake K. Carr & Robert M. Hunt & Tony E. Smith, 2011. "The agglomeration of R&D labs," Working Papers 11-42, Federal Reserve Bank of Philadelphia.
  3. Nakajima, Kentaro & Saito, Yukiko Umeno & Uesugi, Iichiro, 2012. "The Localization of Interfirm Transaction Relationships and Industry Agglomeration," Working Paper Series 17, Center for Interfirm Network, Institute of Economic Research, Hitotsubashi University.
  4. Kristian Behrens, 2013. "Strength in Numbers? The Weak Effect of Manufacturing Clusters on Canadian Productivity," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 377, April.
  5. Yasusada Murata & Ryo Nakajima & Ryosuke Okamoto & Ryuichi Tamura, 2013. "Localized knowledge spillovers and patent citations: A distance-based approach (revised version)," GRIPS Discussion Papers 12-18, National Graduate Institute for Policy Studies.
  6. Naoto Jinji & Xingyuan Zhang & Shoji Haruna, 2013. "Do Regional Trade Agreements Enhance International Technology Spillovers?," Discussion papers e-12-010, Graduate School of Economics Project Center, Kyoto University.
  7. Kristian Behrens & Théophile Bougna, 2013. "An Anatomy of the Geographical Concentration of Canadian Manufacturing Industries," Cahiers de recherche, CIRPEE 1327, CIRPEE.
  8. NAKAJIMA Kentaro & SAITO Yukiko Umeno & UESUGI Iichiro, 2012. "Localization of Interfirm Transaction Relationships and Industry Agglomeration," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 12023, Research Institute of Economy, Trade and Industry (RIETI).
  9. SAITO Yukiko, 2013. "Role of Hub Firms in Geographical Transaction Network," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 13080, Research Institute of Economy, Trade and Industry (RIETI).

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