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Localization of Knowledge and the Mobility of Engineers in Regional Networks

Author

Listed:
  • Paul Almeida

    (McDonough School of Business, Georgetown University, Washington, D.C. 20057)

  • Bruce Kogut

    (Department of Management, The Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania 19104)

Abstract

Knowledge, once generated, spills only imperfectly among firms and nations. We posit that since institutions and labor networks vary by region, there should be regional variations in the localization of spillovers. We investigate the relationship between the mobility of major patent holders and the localization of technological knowledge through the analysis of patent citations of important semiconductor innovations. We find that knowledge localization is specific to only certain regions (particularly Silicon Valley) and that the degree of localization varies across regions. By analyzing data on the interfirm mobility of patent holders, we empirically show that the interfirm mobility of engineers influences the local transfer of knowledge. The flow of knowledge is embedded in regional labor networks.

Suggested Citation

  • Paul Almeida & Bruce Kogut, 1999. "Localization of Knowledge and the Mobility of Engineers in Regional Networks," Management Science, INFORMS, vol. 45(7), pages 905-917, July.
  • Handle: RePEc:inm:ormnsc:v:45:y:1999:i:7:p:905-917
    DOI: 10.1287/mnsc.45.7.905
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    References listed on IDEAS

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