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Beyond Geographical Localization: Individual Determinants of Knowledge Spillover Absorption in Inventors

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  • Haram Lee

Abstract

Purpose: This paper examines how individual-level characteristics shape inventors’ ability to absorb knowledge spillovers. While prior research has focused on firm- or regional-level determinants, this study investigates the micro-foundations of spillover absorption by analyzing how education, experience breadth, and mobility jointly influence knowledge diffusion. Methodology: Using inventor-level data from the PatVal-EU survey covering 6,327 inventors in six European countries, a series of binary probit models estimates the probability of absorbing near and distant knowledge spillovers. Three hypotheses are tested on the influence of labor mobility, knowledge breadth, and depth on knowledge spillover absorption. Six model specifications separately and jointly assess these effects. Findings: Results show that inter-regional mobility significantly increases the probability of absorbing knowledge spillovers, while intra-regional or residential mobility has a limited influence. Education depth positively affects spillover absorption up to the Master’s level, but PhD education yields no additional benefit, suggesting diminishing returns to knowledge depth. The Herfindahl Index of experience concentration is negative and significant, indicating that broader technological experience enhances absorptive ability. Contrary to the hypothesized inverted-U pattern, knowledge breadth positively linearly affects spillover absorption. The results confirm that mobility and absorptive capacity complement each other, helping individuals internalize knowledge from geographically Unique Contribution to Theory, Practice and Policy: The study extends absorptive capacity theory to the individual level, demonstrating that education, cognitive diversity, and mobility jointly determine spillover absorption. It contributes to innovation policy and practice by emphasizing the benefits of promoting inter-regional mobility and the importance of both depth and breadth of knowledge.

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  • Haram Lee, 2025. "Beyond Geographical Localization: Individual Determinants of Knowledge Spillover Absorption in Inventors," International Journal of Economic Policy, CARI Journals Limited, vol. 5(5), pages 68-88.
    • Handle: RePEc:bhx:ijecop:v:5:y:2025:i:5:p:68-88:id:3332
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