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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
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    File URL: http://dx.doi.org/10.1287/mnsc.45.7.905
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    References listed on IDEAS

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    1. Lynne G. Zucker & Michael R. Darby & Marilynn B. Brewer, 1994. "Intellectual Capital and the Birth of U.S. Biotechnology Enterprises," NBER Working Papers 4653, National Bureau of Economic Research, Inc.
    2. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1993. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," The Quarterly Journal of Economics, Oxford University Press, vol. 108(3), pages 577-598.
    3. Marshall, Alfred, 1920. "Industry and Trade," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, edition 3, number marshall1920.
    4. D P Angel, 1991. "High-technology agglomeration and the labor market: the case of Silicon Valley," Environment and Planning A, Pion Ltd, London, vol. 23(10), pages 1501-1516, October.
    5. Albert, M. B. & Avery, D. & Narin, F. & McAllister, P., 1991. "Direct validation of citation counts as indicators of industrially important patents," Research Policy, Elsevier, vol. 20(3), pages 251-259, June.
    6. D P Angel, 1991. "High-Technology Agglomeration and the Labor Market: The Case of Silicon Valley," Environment and Planning A, , vol. 23(10), pages 1501-1516, October.
    7. Pack, Howard & Westphal, Larry E., 1986. "Industrial strategy and technological change : Theory versus reality," Journal of Development Economics, Elsevier, vol. 22(1), pages 87-128, June.
    8. Narin, Francis & Noma, Elliot & Perry, Ross, 1987. "Patents as indicators of corporate technological strength," Research Policy, Elsevier, vol. 16(2-4), pages 143-155, August.
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    Keywords

    knowledge; spillovers; mobility; regions; networks;

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