Localized knowledge spillovers and patent citations: A distance-based approach
Abstract
The existence of localized knowledge spillovers found by Jaffe, Trajtenberg and Henderson (1993) has recently been challenged by Thompson and Fox-Kean (2005). To settle this debate, we develop a new approach by incorporating their concepts of control patents into the distance-based test of localization (Duranton and Overman, 2005). Using microgeographic data, we identify localization distance for each technology class while allowing for cross-boundary spillovers, unlike the existing literature where localization is detected at the state or metropolitan statistical area level. We find solid evidence supporting localized knowledge spillovers even when finer controls are used. We further relax the commonly made assumption of perfect controls, and show that the majority of technology classes exhibit localization unless hidden biases induced by imperfect controls are extremely large.Download Info
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Paper provided by National Graduate Institute for Policy Studies in its series GRIPS Discussion Papers with number 11-11.Length: 42 pages
Date of creation: Sep 2011
Date of revision:
Handle: RePEc:ngi:dpaper:11-11
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Keywords:Other versions of this item:
- Yasusada Murata & Ryo Nakajima & Ryosuke Okamoto & Ryuichi Tamura, 2011. "Localized knowledge spillovers and patent citations: A distance-based approach," Tsukuba Economics Working Papers 2010-010, Economics, Graduate School of Humanities and Social Sciences, University of Tsukuba.
- Yasusada Murata & Ryo Nakajima & Ryosuke Okamoto & Ryuichi Tamura, 2011. "Localized knowledge spillovers and patent citations: A distance-based approach," KIER Working Papers 763, Kyoto University, Institute of Economic Research.
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-11-07 (All new papers)
- NEP-CSE-2011-11-07 (Economics of Strategic Management)
- NEP-GEO-2011-11-07 (Economic Geography)
- NEP-INO-2011-11-07 (Innovation)
- NEP-IPR-2011-11-07 (Intellectual Property Rights)
- NEP-URE-2011-11-07 (Urban & Real Estate Economics)
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- 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.
- 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.
- Gerald A. Carlino & Robert M. Hunt & Jake K. Carr & Tony E. Smith, 2012. "The agglomeration of R&D labs," Working Papers 12-22, Federal Reserve Bank of Philadelphia.
- 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.
- 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.
- NAKAJIMA Kentaro & SAITO Yukiko Umeno & UESUGI Iichiro, 2012. "Localization of Interfirm Transaction Relationships and Industry Agglomeration," Discussion papers 12023, Research Institute of Economy, Trade and Industry (RIETI).
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